Answer:
Step-by-step explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the amount of money invested.
P represents the principal or amount of money invested.
R represents interest rate on the investment.
T represents the duration of the investment in years.
From the information given,
P = $5000
R = 2.3%
T = 3 years
Therefore,
I = (5000 × 2.3 × 3)/100
I = $345
The total amount that the CD would be worth at the end of 3 years is
5000 + 345 = $5345
