Problema Solution
A bank pays 3% annual simple interest on CDS of $25,000 dollars. The Branson family invest in 3 of the $25,000 CDS. How much interest does the family make in one year?
Answer provided by our tutors
r = 0.03 or 3% annual simple interest
P = 3*25,000 the money that Branson family invests
t = 1 year
I = the interest
I = P*r*t
I = 3*25,000*0.03*1
I = $2,250
In 1 year the family makes interest of $2,250.