Question

A bank offers a CD that pays a simple interest rate of 5.5%. How much must you put in this cd now in order to have $8000 for a kitchen remodeling project in two years? Could you please show work?

Answer 1

8000=C(1+2x5.5%)
This gives
C=7207.2

Answer 2

\[A=P+Prt\]
8000=P(1+rt)
8000=P(1+.055(2))
8000=P(1.11)
P=8000/1.11=7207.20

Answer 3

Thanks for your help, I appreciate it