Question

HELP PLEASE!!!

1) Deangelo deposited $9350 into a savings account for which interest is compounded daily at a rate of 2.58% how much interest will he earn after 12 years?
A)$2821.97
B)$3392.79
C)$244.36
D)$252.50

2) Colby deposited money into a savings account that pays a simple annual interest rate of 1.8% he earned $334.80 in interest after 6 years. how much did he deposit?
A)$18,600,00
B)$11,160.00
C)$3100.00
D)$2008.80

3) Whitney deposited money into an account in which interest is compounded quarterly at a rate of 2.9% she made no other deposite or withdrawals and the total amount in her account after 12 years was $10,891.31 how much did she deposit ?
A)$7700
B)$8650
C)$9700
D)$10,580

4) The graph shows the total amounts in two accounts with the same principal and annual interest rate. after 40 years, how much did the account with compound interest earn than the account with simple interest?
A) About $525
B) About $500
C) About $300
D) About $225

Answer 1

Part 4 answer is about $300

Explanation:

I took the quiz!

Answer 2

Part 1) Option B.
`\$3,392.79`

Part 2) Option C.
`\$3,100`

Part 3) Option A.
`\$7,700`

Part 4) Option D. About
`\$225`

Explanation:

Part 1) we know that

The compound interest formula is equal to

`A=P(1+(r)/(n))^(nt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

`t=12\ years\\ P=\$9,350\\ r=0.0258\\n=365`

substitute in the formula above

`A=\$9,350(1+(0.0258)/(365))^(365*12)=\$12,742.79`

Find the interest

`I=A-P=\$12,742.79-\$9,350=\$3,392.79`

Part 2) we know that

The simple interest formula is equal to

`I=P(rt)`

`P=I/(rt)`

where

I is the interest amount

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=6\ years\\ I=\$334.80\\ P=?\\r=0.018`

substitute in the formula above

`P=\$334.80/(0.018*6)=\$3,100`

Part 3) we know that

The compound interest formula is equal to

`A=P(1+(r)/(n))^(nt)`

`P=A/[(1+(r)/(n))^(nt)]`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

`t=12\ years\\ A=\$10,891.31\\ r=0.029\\n=4`

substitute in the formula above

`P=\$10,891.31/[(1+(0.029)/(4))^(4*12)]=\$7,700`

Part 4)

The account with compound interest earn about
`\$760`

The account with simple interest earn about
`\$520`

see the attached figure

The difference is equal to

`\$760-\$520=\$240`

therefore

the answer is about
`\$225`