Questions 11-15 all refer to the following situation: The First Ojai National Bank advertises a CD that pays 8.2% simple interest for two years. Suppose we were to invest $1,485 in such a CD.

14. The amount of money that could be expected when the CD is cashed in two years from now is:

c. $243.54

Nope, don't you get your principal back? Please see top of page 417 and/or Session 2, Page 8, Pictures D - F.

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