To determine the interest earned on a Certificate of Deposit (CD) with a fixed maturity of 2 years, an initial investment of [tex]$660, and an annual interest rate of 3.4%, we will use the simple interest formula:
\[
\text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time}
\]
Here's the step-by-step solution:
1. Identify the principal (initial investment):
\[
\text{Principal} = \$[/tex]660
\]
2. Convert the annual interest rate from a percentage to a decimal:
[tex]\[
\text{Rate} = \frac{3.4}{100} = 0.034
\][/tex]
3. Determine the time period in years:
[tex]\[
\text{Time} = 2 \, \text{years}
\][/tex]
4. Plug these values into the simple interest formula:
[tex]\[
\text{Interest} = \$660 \times 0.034 \times 2
\][/tex]
5. Perform the multiplication:
[tex]\[
\text{Interest} = 660 \times 0.034 = 22.44
\][/tex]
[tex]\[
22.44 \times 2 = 44.88
\][/tex]
6. Round the result to the nearest hundredth:
[tex]\[
\text{Interest} = \$44.88
\][/tex]
Therefore, the interest earned on the CD over the 2-year period is [tex]\( \boxed{44.88} \)[/tex].
