Bill Casler bought a $8000, 9-month certificate of deposit (CD) that would earn 8% annual simple interest. Three months before the CD was due to mature, Bill needed his CD money, so a friend agreed to lend him money and receive the value of the CD when it matured. (a) What is the value of the CD when it matures?
(b) If their agreement allowed the friend to earn a 10% annual simple interest return on his loan to Bill, how much did Bill receive from his friend?

a

The value of the CD when it matures is   $  8,480

b

  Bill receive from his friend    $8273.2

Step-by-step explanation:

From the question we are told that

   The price of the car is  $8000

     The  certificate of deposit is  

     The annual interest is  8%

The value  CD when it matures can be mathematically represented as

substituting values

substituting values  we have

           $  8,480

Let assume bill received z dollars from his friend

   Now the total amount after three months which is the duration of the loan  is mathematically evaluated as

Now since the amount after three month is equivalent to  the value of CD as we are told from the question that Bill agreed his friend receives the CD as payback we have that

=>    

=>    

        $8273.2

i dont understand the question? ?

step-by-step explanation: