Respuesta :
You must put 59.83 cents into the CD to have an amount of 3500 cents for a home-entertainment center in 5 years.
What is Simple Interest?
- Calculating the amount of interest charged on a sum at a particular rate and for a certain duration of time is done using Simple Interest (SI). Contrary to compound interest, which adds the interest from the principal of prior years to determine the interest of the following year, the principal amount in simple interest remains constant.
- To calculate simple interest, multiply the daily interest rate by the principle and the number of days between payments.
What is Amount?
- When someone takes out a loan from a bank, they are required to pay it back, and the amount they pay back is referred to as Amount (A).
- Amount (A) is the total sum of Principal (P) and Simple Interest (SI).
- It is calculated using the formula, [tex]A=P(1+RT)[/tex], where R and T are the Rate of Interest and Time Duration respectively.
Here, the Simple Interest Rate (R) is given as 11.5%.
The Amount (A) is equal to 3500 cents.
The Time Duration (T) is given as 5 years.
Using the equation for calculating Amount, we get
[tex]A=P(1+RT)\\\implies 3500 = P(1+11.5 \times 5)\\\implies 3500 = 58.5P[/tex]
Solving, we get
[tex]P=59.83[/tex]
Therefore, you must put 59.83 cents into the CD to have an amount of 3500 cents for home-entertainment center in 5 years.
To learn more about Simple Interest from the given link
https://brainly.com/question/25793394
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