Master Your Money Mojo! Ace the 2026 BPA Personal Finance Challenge

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.