Answer:
Explanation:
So, you need to know the formula for simple and compound interest. If you want an in depth explanation let me know, but for a quick one, the simple interest formula is P+Prt where P is the starting amount, r is the rate and t is the amount of times it is compounded. In this instance it always uses the amount you originally put in to find interest. Another way of writing it is P(1+rt)
Compound interest is a little more complicated. The formula is P(1+(r/n))^(nt) where r is the rate again, n is the number of times per year it is compounded and t is the number of years. Again, if you want a more in depth explanation let me know. Anyway we can now answer the question.
a) Simple interest is simple 24,000(1+.07*30) = $74,000
b) Compounded means we have to look for all the parts. r is .07 t is 30 and n is 1 24,000(1+(.07/1))^(1*30) = $182,694.12
c) r = .07 n = 4 t = 30 so 24,000(1+(.07/4))^(4*30) = 192,460.40
d) r = .07 n = 12 t = 30 so 24,000(1+(.07/12))^(12*30) = 194,795.94