D Question 1
1 pts
How much interest will you earn on
a two year $6,000 CD that will pay
annual interest of 5%? The first
year's interest will remain in the CD
and also earn interest during the
second year.

$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 interest300+6000=x, x=63006300(0.05)+6300=compounded interest315+6300=compounded interest6615=total after compounded interest6615-6000=how much in interest is paid$615 in compounded interest.