Question 1059216
The bank offers 2.8% simple interest for 3 years. This amounts to 3 x .028, which equals 8.4% over the years. Let your initial deposit be n. Then:
n(1+.084)=850
1.084n=850
n=$784.13 needs to be your initial deposit. &#9786;&#9786;&#9786;&#9786;

Simple interest does NOT compound over time; so the bank only pays 2.8% interest per year on the initial deposit. Since the CD is for a 3 year period, the total interest earned is 3 x 2.8%, which is 8.4%. Let n be your initial deposit. Then:
n(100%+8.4%)=850
1.084n=850
n=$784.13 ad your initial deposit. Again. &#9786;&#9786;&#9786;&#9786;