Question 3.3. Jeff invests an amount at 4% interest compounded annually. After 3 years, he has $1687.30.
What was the original amount Jeff invested?
$750
$1200
$1450
$1500

Question 4.4. If $3000 is deposited in an account that pays 5% interest, what is the difference in the amount after 4 years between the amount earned if the principal is compounded annually and the amount earned calculated using simple interest?
$30.72
$41.12
$46.52
$53.76

Question

Question 3.3. Jeff invests an amount at 4% interest compounded annually. After 3 years, he has $1687.30.
What was the original amount Jeff invested?
       $750
       $1200
       $1450
       $1500

Question 4.4. If $3000 is deposited in an account that pays 5% interest, what is the difference in the amount after 4 years between the amount earned if the principal is compounded annually and the amount earned calculated using simple interest?
       $30.72
       $41.12
       $46.52
       $53.76

anonymous · Answer

Question A:

Solve for PV
$$1,687.30 = PV(1+.04)^{3}$$

Question B:

5% interest compounded 

Solve for FV
$$FV=3000(1+.05)^{4}$$

5% simple interest
Solve for FV

FV= 3000 + [(3000)(.05)(4)]