Question

a simple interest certificate of deposit (cd) offers a fixed interest rate of 3% annually. if you invest $10,000 for 2 years, what will be the total interest earned?
simple interest formula: $i = pcdot rcdot t$
$300
$1,200
$600
$900

Explanation:

Step1: Identify values

$P = 10000$, $r=0.03$, $t = 2$

Step2: Apply simple - interest formula

$I=P\times r\times t=10000\times0.03\times2$
$I = 600$

Answer:

$600$