Derek buys a four year cd that pays 7.2% simple interest from bank of america for $250,00. find the value of the cd at the end of its term

Question

Not sure how to do finance a really need help with this problem 

Answer 1

Interest earned by Derek in year one = 250000x(7.2/100) = 1800

=> Since it's simple interest (NOT compound), so interest earned in 4 years = 4x 1800 = 7,200

=> Value of cd at the end of 4 years = 250,000+7,200 = $ 257,00