Question

Jerry invested $14,000 in a certificate of deposit at 5%. He also put $2,500 in a savings account at 3%. How much interest will he earn after one year?

Answer 1

`775`

Explanation:

Interest is calculated by taking the amount that you put in multiplied by the rate assuming you get interest annually.

`$14000` was put in at `5%`. So we multiply `14000` by `.05` since we have to change it in decimal form:

`14000(.05)=700`

Now we also have `2500` with an interest of `3%`. So multiply `2500` by `.03`:

`2500(.03)=75`

Now add the values together. That will be the interest he earns:

`700+75=775`