Using the following formula for simple interest:
[tex]\begin{gathered} V=V_0(1+rn), \\ w\text{here V}_{0\text{ }}is\text{ the initial amount, r is the interest rate, and n is the number of times } \\ \text{the rate is applied.} \end{gathered}[/tex]Substituting r=0.06, V₀=1500, and n=10*12=120 we get:
[tex]V=1500(1+0.06(120))=1500(1+7.2)=1500(8.2)=12300.[/tex]Therefore after 10 years, using simple interest, the CD will be worth $12,300.
Answer:
After 10 years, using simple interest, the CD will be worth $12,300.
