true or false: a cd for $2,000 that earned 5% interest for 30 months results in a gained interest of…

true or false: a cd for $2,000 that earned 5% interest for 30 months results in a gained interest of $250.00. true false

true or false: a cd for $2,000 that earned 5% interest for 30 months results in a gained interest of $250.00. true false

Answer

Explanation:

Step1: Convert months to years

Since there are 12 months in a year, 30 months $n=\frac{30}{12}= 2.5$ years.

Step2: Use simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Here, $P = 2000$, $r=0.05$ (since 5% = 0.05), and $t = 2.5$. Then $I=2000\times0.05\times2.5$.

Step3: Calculate the interest

$I=2000\times0.05\times2.5 = 250$.

Answer:

True