Question

1. Compound interest can be computed using the simple interest formula.

True
False
2. Timothy invested $1,500 in a company retirement account that pays 4% annual interest, compounded monthly. Find the value of his investment after 20 years.

$1,833.87
$1,230.45
$2,730.45
$3,333.87
3. For retirement, Linda invested $4,000 in an account that pays 7% annual interest, compounded quarterly. Find the value of his investment after 10 years.

$7,959.16
$3,959.16
$4,006.40
$8,006.40