SOLUTION: A bank is offering a CD that pays an annual simple interest rate of 4.5%. How much money would you need to invest in this CD now in order to have $2500 two years from now for a dow
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Question 1110090: A bank is offering a CD that pays an annual simple interest rate of 4.5%. How much money would you need to invest in this CD now in order to have $2500 two years from now for a down payment on a used car?
Answer by jorel1380(3719) (Show Source): You can put this solution on YOUR website!
Let n be the amount of money needed. Then:
2500=n x ((1+(2 x 0.045)=1.09n
n=2293.58
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