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Please I need help with these 3 questions with explanation. See attached below.

Please help!

Please I need help with these 3 questions with explanation. See attached below. Please-example-1
User Brynna
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1 Answer

2 votes

Answer:

18. compound interest

19. simple interest

20. simple interest

Explanation:

For these problems, the initial balance is irrelevant. All that matters is the multiplier of that balance. For simple interest at rate r for t years, the multiplier is ...

simple interest multiplier = (1 +rt)

For interest compounded annually, the multiplier of the initial balance is ...

compound interest multiplier = (1 +r)^t

A spreadsheet can do the computations for you.

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As an example of the computations involved, consider problem 19:

simple interest multiplier = 1 + 0.13·6 = 1.78

compound interest multiplier = 1.10^6 = 1.771561

The latter is less than the former, so the simple interest account will have the (slightly) greater balance at the end of 6 years.

Please I need help with these 3 questions with explanation. See attached below. Please-example-1
User Khang
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