Question

Rose and Dennis each open a savings account at the same time. Rose invests $2,600 in an account yielding 4.1% simple interest, and Dennis invests $2200 in an account yielding 5.7% simple interest. After nine years, who has the greater total amount of money, and how much greater is it?

Answer 1

Rose: A=P(1+RT)
A=$2600(1+0.041*9)=$3559.40
Dennis:
A=$2200(1+0.057*9)=$3328.60
Rose-Dennis: $3559.40-$3328.60=$230.80

Rose would have $3559.40 and Dennis would have $3328.60.
Rose would have $230.80 more than dennis

Answer 2

Thank you so much , i suck with this interest stuff .. if i have another question could u help me right away ??

Answer 3

if i can answer it sure

Answer 4

ok thank u :}

Answer 5

Mary and Lewis each open a savings account at the same time. Mary invests $3,700 in an account yielding 3.2% simple interest, and Lewis invests $3,000 in an account yielding 5.9% simple interest. After fifteen years, who has the greater total amount of money, and how much greater is it?

Answer 6

so basically same thing using the formula A=P(1+RT)
P=principal
R=rate
T=time

For mary: A=$3700(1+0.032*15)
A=$5476

For Lewis:A=$3000(1+0.059*15)
A=$5655

So who has greater take the person who gets more subtract who has less in this case lewis-mary = $5655-5476=$179
So Lewis has a greather amount of money by $179

Answer 7

3.2%=3.2/100=0.032
5.7%=5.7/100=0.057

Answer 8

http://www.calculatorsoup.com/calculators/financial/simple-interest-plus-principal-calculator.php
A calculator to help you

Answer 9

omg thank u soo much u have been the biggest help !! :} i wish i could give u something lol or a hug haha !! well thank u :)

Answer 10

your welcome.

Answer 11

any other question?

Answer 12

no not as of now but thank u !!:) if i do ill make sure ill ask u :)

Answer 13

ok

Answer 14

ok soo im in compound interest and sooo confused lol

Answer 15

ok what are the questions?

Answer 16

You have $12,000 to invest and want to keep your money invested for 8 years. You are considering the following investment options. Choose the investment option that will earn you the most money.

Answer 17

options?

Answer 18

a.
3.99% compounded monthly
b.
4% compounded quarterly
c.
4.175% compounded annually
d.
4.2% simple interest

Answer 19

ok for compound interest use the formula:

V = P(1+r/n)^nt
V = the future value of the investment
P = the principal investment amount
r = the annual interest rate
n = the number of times that interest is compounded per year
t = the number of years the money is invested for

Answer 20

so for part a: it's V=$12,000(1+0.0399/12)^12*8
=$12,000(1.003325)^96=$12,000(1.375298094)=$16,503.58

n=12 because number of times a year is 12 months in a year

Part b: V=$12,000(1+0.04/4)^4*8
V=$12,000(1.01)^32
V=$12,000(1.374940679)=$16,499.28814 or $16,499.29

n=4 because number of times a year is 4 quarters in a year

Part C: V=$12,000(1+0.04175/1)^1*8
V=$12,000(1.387100962)=$16,645.21155 or $16,645.21

n=1 only once per year

Part d: A=P(1+rt)
A=$12,000(1+0.042*8)
A=$12,000(1.336)=$16,032

So option c would earn you the most money.

Answer 21

http://www.getsmarteraboutmoney.ca/tools-and-calculators/compound-interest-calculator/compound-interest-calculator.aspx?gclid=CNzTj_uXor8CFclaMgodP1QAjQ#.U7GoK_ldX-1

compound calculator

Answer 22

thank you again soo much !! you're awesome !!:)