Question 1094320
How much money in dollars should a person deposit in a 6-months certificate of deposit CD that earns 9% simple interest in order to have $7000 when the CD matures at the end of the 6 months? Round your answer up to the nearest cent.
:
Let Ao = amt to be invested
Use the formula {{{A = Ao(1+(r/n))}}}
{{{7000 = Ao(1+(.09/2))}}}
7000 = Ao*1.045
Ao = {{{7000/1.045}}}
Ao = $6698.56