Serena
has 2,500 to invest in a cd (certificate of deposit ).
=> Serena would like to have $3,000 altogether.
=> If the interest rate is 5% in how many years will she have $3,000?
Let’s first find the annual interest of 2500 that has 5% interest rate.
=> 2 500 * .05 = 125
Now, we need to have 500 dollars to be able to have 3000 dollars
=> first year’s money = 2 500 + 125 = 2625
=> 125 * 4 = 500
Thus, in 4 years, Serena will be able to get 3000 dollars in her account.
