A bank offers a CD that pays a simple interest rate of 7.0%. How much must you put in this CD now in order to have $2500 for a home-entertainment center in 5 years.

the amount she must invest is $1852

Step-by-step explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount invested.

P represents the principal or amount invested.

R represents interest rate

T represents the duration of the investment in years.

From the information given,

I = 2500 - P

R = 7%

T = 5 years

Therefore,

2500 - P = (P × 7 × 5)/100

2500 - P = 0.35P

0.35P + P = 2500

1.35P = 2500

P = 2500/1.35

P = 1852

Word form: Two and fifty-one hundredths

Expanded form: 2 + 0.5 + 0.01