SOLUTION: Tom found a certificate of deposit that paid 5.5% interest per year if you put 25,000 in this CD and leaves it in the bank for four years how much interest did he earn?
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Question 1135653: Tom found a certificate of deposit that paid 5.5% interest per year if you put 25,000 in this CD and leaves it in the bank for four years how much interest did he earn? Answer by greenestamps(13203) (Show Source):
(1) Are YOU putting the money in the CD, or is Tom? If YOU are -- as the statement of the problem says -- then YOU earn whatever interest there is; Tom earns none.
(2) The wording "5.5% interest per year" SUGGESTS simple interest rather than compound interest; but we don't know for sure. Specify simple or compound interest.
