If You Deposit $5,000 into a 6-Month CD (Certificate of Deposit)

question 49

Essay

If you deposit $5,000 into a 6-month CD (certificate of deposit) that pays 7.5% APR simple
interest, what is its value at maturity?

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Definitions:

Sun Gear

The central or axis gear in a planetary gearset. It may be optioned to rotate or not rotate, depending on the gear arrangement and desired output ratios.

Ring Gear

A large gear that meshes with a smaller gear (pinion), often used in the differential of an automobile.

Planetary Gearset

a compact, high-torque gear system where the central gear (sun gear) drives multiple outer gears (planet gears) which in turn drive a ring gear.

Ring Gear

A large circular gear that engages with a smaller, driving gear or pinion, often found in the differential of a vehicle.