SOLUTION: How much money in dollars should a person deposit in a 6-months certificate of deposit CD that earns 6% simple interest in order to have $5000 when the CD matures at the end of the
Question 1154683: How much money in dollars should a person deposit in a 6-months certificate of deposit CD that earns 6% simple interest in order to have $5000 when the CD matures at the end of the 6 months? Round your answer up to the nearest cent. Answer by ikleyn(52803) (Show Source): You can put this solution on YOUR website! .
5000 = x*(1 + 0.06*0.5). <<<---=== in this formula, 0.5 represents 6 months (0.5 of an year).
5000 = x*1.03
x = = 4854.37 dollars. ANSWER