SOLUTION: A bank offers a CD that pays a simple interest rate of ​6.0%. How much must you put in this CD now in order to have ​$3000 for a​ home-entertainment center in 2 years.

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Question 1204037: A bank offers a CD that pays a simple interest rate of ​6.0%. How much must you put in this CD now in order to have ​$3000 for a​ home-entertainment center in 2 years.
Found 2 solutions by ikleyn, math_tutor2020:
Answer by ikleyn(52778)   (Show Source): You can put this solution on YOUR website!
.

Use the simple interest formula and write equation for the future value

    3000 = x*(1+0.06*2),


where x is the unknown starting deposit.


From this equation, find x

    x =  = 2678.58  (rounded to the closest greater cent).   ANSWER

Solved.

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To see many other similar  (and different)  solved problems on simple interest accounts,  look into the lesson
    - Simple interest percentage problems
in this site.

Learn the subject from there.



Answer by math_tutor2020(3816)   (Show Source): You can put this solution on YOUR website!

Answer: $2,678.57

Work Shown
final balance = principal*(1+interestRate*time)
3000 = x*(1+0.06*2)
3000 = 1.12x
x = 3000/1.12
x = 2,678.57142857142
x = 2678.57

Check
final balance = principal*(1+interestRate*time)
final balance = 2678.57*(1+0.06*2)
final balance = $2,999.9984
final balance = $3,000
The answer is confirmed.
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