Danille's bank pays 6.5% interest annually on Certificates of Deposit (CDs). If she purchases a $25,000 CD from her bank, how much will she have after a year?

$1,625

$16,250

$25,006.50

$26,625

$41,250

Question

Danille's bank pays 6.5% interest annually on Certificates of Deposit (CDs). If she purchases a $25,000 CD from her bank, how much will she have after a year?

$1,625

$16,250

$25,006.50

$26,625

$41,250

anonymous · Answer

$26,625

anonymous · Answer

can u plz explain 2 me how u worked it out?

anonymous · Answer

Change 6.5% to 0.065 and multiply it by your original amount to get the interest earned.
Then add the interest to the original amount to get the total.

anonymous · Answer

25,000* .065= 1625


25,000+ 1625=26625

anonymous · Answer

You find what you have in the end of the year and add it to what you already have

1625 is what you made
25000 is what you already had

anonymous · Answer

is that a simple interest or compound?

anonymous · Answer

Simple.

anonymous · Answer

k, follow the y=mx+b

anonymous · Answer

It says annually so it's not compound