document.write( "Question 1206375: A bank offers a CD that pays a simple interest rate of 7.5%. How much must you put in this CD now in order to have $4 comma 000 for a home-entertainment center in 3 years. \n" ); document.write( "

Algebra.Com's Answer #843799 by ikleyn(52775) $\"\"$ $\"About$

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\n" ); document.write( "A bank offers a CD that pays a simple interest rate of 7.5%. How much must you put
\n" ); document.write( "in this CD now in order to have $4 comma 000 for a home-entertainment center in 3 years.
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document.write( "The formula for the future value of a simple interest deposit is\r\n" );
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document.write( "    FV = .\r\n" );
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document.write( "Here FV = $4000 (given);  X is the unknown value of the one-time amount deposited today;\r\n" );
document.write( "r is the annual rate (0.075, given);  t is the time in years (3 years, given).\r\n" );
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document.write( "From this formula,  X =  =  = 3265.31  (rounded).\r\n" );
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document.write( "ANSWER.  $3265.31 should be deposited today.\r\n" );
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