Answer:
$600 (if not compound interest) read below
Step-by-step explanation:
This question is asking for the amount of interest, not the total including the $6,000 CD, which means the question will be way simpler.
- You try to find interest for 2 years.
- This is mostly mental work. What is 5% of 6000?
- Equation: (5% of 6000)(2)
- (300)(2)
- $600 in interest.
- This depends. Are we trying to find compounded interest? If we were, we would find 5% of 6000, add it to 6000, then add 5% of that sum.
- (0.05)(6000)+6000=x, x(0.05)=compounded interest
- 300+6000=x, x=6300
- 6300(0.05)+6300=compounded interest
- 315+6300=compounded interest
- 6615=total after compounded interest
- 6615-6000=how much in interest is paid
- $615 in compounded interest.
