SOLUTION: 1. Michael is saving money to buy a car He takes $3,000 to the bank and opens a 2 year certificate of deposit (CD) upon which the bank agrees to pay him 2% simple interest what wil

Question 1139906: 1. Michael is saving money to buy a car He takes $3,000 to the bank and opens a 2 year certificate of deposit (CD) upon which the bank agrees to pay him 2% simple interest what will be the future value after the 2 year period.
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
simple interest formula is i = p * r * t

i is the interest
p is the principal
r is the interest rate per time period
t is the number of time periods.

$3,000 in the bank for 2 years at 2% per year make the formula becomes i = 3000 * .02 * 2 which becomes i = $120.

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