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31 March, 01:21

A bank offers a CD that pays a simple interest rate of 8%. How much must you put in this CD now in order to have 8200 to replace all the windows in your house in 8 years

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  1. 31 March, 03:45
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    Answer: you must put $5000 in this CD now in order to have 8200

    Step-by-step explanation:

    The formula for determining simple interest is expressed as

    I = PRT/100

    Where

    I represents interest paid on the amount of money invested.

    P represents the principal or amount of money invested.

    R represents interest rate on the investment.

    T represents the duration of the investment in years.

    From the information given,

    I = total amount - Principal

    I = 8200 - P

    R = 8%

    T = 8 years

    Therefore,

    8200 - P = (P * 8 * 8) / 100

    8200 - P = 0.64P

    0.64P + P = 8200

    1.64P = 8200

    P = 8200/1.64

    P = $5000
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