A one-year Certificate of Deposit pays 2.5% interest. If you invested $750 on February 1, 2017, what amount would you receive from the bank on February 1, 2018?

To determine the amount received from the bank after one year for a Certificate of Deposit (CD) with a specified interest rate, you can use the formula for simple interest, which is:

Total Amount = Principal + (Principal × Interest Rate × Time)

In this scenario:

• Principal is $750, which is the amount initially invested.

• Interest Rate is 2.5%, expressed as a decimal for calculation purposes as 0.025.

• Time is 1 year.

Using the formula, we calculate the interest earned over the year:

Interest = $750 × 0.025 × 1 = $18.75

Now, to find the total amount received from the bank, we add the interest to the principal:

Total Amount = $750 + $18.75 = $768.75

Thus, the amount you would receive from the bank on February 1, 2018, is $768.75, making this the correct answer.