SOLUTION: if i put 2000 in a cd account for 2 years how much money should it genarate

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Question 757520: if i put 2000 in a cd account for 2 years how much money should
it genarate
Answer by LearnWithMajor(33) About Me  (Show Source):
You can put this solution on YOUR website!
Depends on the interest rate of the CD. Simple interest formula is I = p*r*t which stands for interest equals principle times interest rate times time(years) so for this problem principle equals 2000 and time equals 2.
I+=+2000%2Ar%2A2
Remember interest rate must be in its fraction or decimal form.
Exp. If the interest rate was 2%
I+=+2000%2A0.02%2A2+=+80
At 2% interest a CD with a 2000 principle will generate $80 of interests.