SOLUTION: How much money in dollars should a person deposit in a 6-months certificate of deposit CD that earns 8% simple interest in order to have $4000 when the CD matures at the end of the
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Question 1019899: How much money in dollars should a person deposit in a 6-months certificate of deposit CD that earns 8% simple interest in order to have $4000 when the CD matures at the end of the 6 months? Round your answer up to the nearest cent. (Enter a number.) Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! How much money in dollars should a person deposit in a 6-months certificate of deposit CD that earns 8% simple interest in order to have $4000 when the CD matures at the end of the 6 months? Round your answer up to the nearest cent. (Enter a number.)
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A(t) = P(1+rt)
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4000 = P(1+0.08*(6/12))
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4000 = P(1.04
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P = 4000/1.04 = $3846.15
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Cheers,
Stan H.
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