Leah Hagel bought a $3,000, 9-month certificate of deposit (CD) that would earn 9% annual simple interest. Three months before the CD was due to mature, Leah needed her CD money, so a friend agreed to lend her money and receive the value of the CD when it matured. If their agreement allowed the friend to earn a 7% annual simple interest return on her loan to Leah, how much did Leah receive from her friend? Round your answer to the nearest cent.
A)$3,258.54
B)$3,129.48
C)$3,094.20
D)$3,183.93
E)$3,059.71

Question

Leah Hagel bought a $3,000, 9-month certificate of deposit (CD) that would earn 9% annual simple interest. Three months before the CD was due to mature, Leah needed her CD money, so a friend agreed to lend her money and receive the value of the CD when it matured. If their agreement allowed the friend to earn a 7% annual simple interest return on her loan to Leah, how much did Leah receive from her friend? Round your answer to the nearest cent. ​
A)$3,258.54
B)$3,129.48
C)$3,094.20
D)$3,183.93
E)$3,059.71

Quizplus · Accepted Answer

The Answer is A

Leah Hagel Bought a $3,000, 9-Month Certificate of Deposit (CD)