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?

1 Answer
Jun 1, 2017

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