What is 7% interest on $5000 for two years?

if brought a $5000 CD at a local bank the CD will pay me 7% simple interest how much interest in dollars will I receive in two years?
monica213
Asked Feb 12, 2010
Edited Feb 12, 2010
Simple interest means that there is no compounding during the period in question. However you have not said if 7% is the annual rate of interest or the amount of interest that will be earned during the two year period.

If 7% is an annual rate then the answer is $700. If it is 7% for the two year period then the answer is $350.
davipa
Answered Feb 16, 2010
how did u get this answer? this is a ? on the GED test, I am so bad at math! how did u come up with $700? Somehow I did come up with $350 but that was the wrong answer it was $700. so how did u come up with that answer for 1 and 2 whats the difference between annual rate, or amount earned during this 2 year period? I dropped our of H.S because I was so behind in my math credits I was a senior in a algebra 1a class (like middle school algebra and I still had a hard time) so I dropped out knowing I wouldnt graduate with my class, went on to make $ in a more physical skilled job which is my cup of tea then brain work lol but now im married and been a stay at home mom with 2 boys since 2009 one is 3 one is 1 1/2 so im starting to get my GED process along so I can go to college to help my husband make some money for this family, Im so out of touch with school expeshially math.

TIP: If it's not your answer to this question, please click "Leave a Comment" button under the question to communicate with the question owner.

Can you help them?

You may want to know:

Categories