Mark invested $500 in a cd that pays 5% simple interest, calcuated semiannually. how much money will mark earn in 3 years?

He will earn $75 after 3 years.

Explanation: To calculate Simple Interest, we use the formula:

     .....(1)

where, i = Simple Interest

P = Principle amount

R = Rate of interest

t = Time period

Given:

P = $500

R = 5%

t = semiannually which means years

As we are asked the total amount earned after 3 years which means 6 half years, so we multiply the interest calculated semiannually by 6 to get the total interest after 3 years.

Putting all the values in equation 1, we get

i = $75

Total amount earned after 3 years = i = $75

 = $75