
Concept explainers
To calculate: The amount of the certificate after 8 years.

Answer to Problem 38STP
The amount of certificate is $790.
Explanation of Solution
Given information: The amount of deposit certificate is $500. Rate of simple interest is 7.25%, number of years = 8.
Formula used: The simple interest formula is
Where, S.I = simple interest amount, P = principal amount, r =annual rate of interest, t = the length of time the money is invested.
Calculation:
In the problem given,
P = $500, r=
Simple interest amount = $290.
Total amount of certificate after 8 years =
So, the total amount of certificate = $790.
Chapter 7 Solutions
Pre-Algebra, Student Edition
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