Acd usually sells for $18.00. if the cd is 20% off, and sales tax is 5%, what is the total price of the cd, including tax?

a. $15.12
b. $16.06
c. $14.18
d. $15.30

the answer is 200

step-by-step explanation:

the way the question is worded, it seems to imply the $264 interest is simple interest, not compound interest.

the simple interest for 2 years is $264; the simple interest for 1 year is $132.

$132 interest on a $600 investment means an interest rate of (132/600)*100 = 22%.

the value of $200 at 22% interest compounded annually for three years is

200%281.22%29%5e3

the amount of interest is that value, minus the original $200.

b

step-by-step explanation:

b