Compare the interest earned by $15,000 for seven years at 13% simple interest with that earned by the same amount for seven years at 13% compounded annually. The interest earned by $15,000 for seven years at 13% simple interest is $28650 (Round to the nearest dollar.) 4
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- Compare the interest earned by $9,000 for five years at 8% simple interest with interest earned by the same amount for five years at 8% compounded annually. Explain why a difference occurs.Find the accumulated amount A if the principal P is invested at the interest rate of r/year for t years. (Use a 365-day year. Round your answer to the nearest cent.) P = $43,000, r = 9 3/4 % t = 9, compounded quarterly A = $Compare the Interest earned by $9,000 for eight years at 7% simple interest with interest earned by the same amount for eight years at 7% compounded annuaily Why does a difference occur? A Click the icon to view the interest and annulty table for discrete compounding when i=7% per year. The simple interest earned is $ (Round to the nearest dollar) The compound Interest earned is S . (Round to the nearest dollar.) There is a difference in the amount of interest earned because V allows interest from previous vears to earn additional interest, whereas only considers the original principal. simple interest compound interest Enter your answer in each of the answer boxes.
- Suppose you deposit $4,000 at the end of each quarter for five years at an interest rate of 8% compounded monthly. Which of the formulas given next will determine the equal annual end-of-year deposit amount that would accumulate the same balance over five years, under the same interest compounding, as the $4,000 deposited quarterly?(a) A= ($4,000 (FIA, 2.01%,20)] x (AIF, 8%, 5).(b)A = $4,000 (FIA, 9%, 5).(c) A= $4,000 (FIA, 9%, 20) x (AIF, 9%, 5).(d) None of the above.if the simple interest on $7,000 for 8 years is $3,920, then what is the interest rate.Compare the interest earned by P dollars at i% per year simple interest with that earned by the same amount P for five years at i% compounded annually.
- The present value of $64,000 to be received in one year, at 6% compounded annually, is _____ (rounded to nearest dollar). Use the following table, if needed. Present Value of $1 at Compound Interes Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 0.90703 0.89000 0.87344 0.82645 0.79719 3 0.86384 0.83962 0.81630 0.75132 0.71178 4 0.82270 0.79209 0.76290 0.68301 0.63552 5 0.78353 0.74726 0.71299 0.62092 0.56743 6 0.74622 0.70496 0.66634 0.56447 0.50663 7 0.71068 0.66506 0.62275 0.51316 0.45235 8 0.67684 0.62741 0.58201 0.46651 0.40388 9 0.64461 0.59190 0.54393 0.42410 0.36061 10 0.61391 0.55840 0.50835 0.38554 0.32197Suppose that $290,000.00 is owed on a house. The monthly payment for principal and interest at 8.0% for 30 years is 290 x $ 7.33765 = $ 2127.92 The total interest charged is the total amount paid minus the amount financed. What is the total interest that will be paid? The total interest is $Use the compound interest formula to compute the total amount accumulated and the interest earned. $5000 for 2 years at 4.5% compounded monthly The total amount accumulated after 2 years is (Round to the nearest cent as needed.) The amount of interest earned is
- Compare the interest earned by $10,000 for three years at 7% simple interest with interest earned by the same amount for three years at 7% compounded annually Why does a difference occur? A Click the icon to view the interest and annuity table for discrete compounding when =7% per year The simple interest earned is $ (Round the nearest dollar.) The compound interest earned is S. (Round to the nearest dollar only considers the original principal. There is a difference in the amount of interest earned because Y allovs interest from previous years to earn additional interast, whereas compaund interest simple interest Enter your answer in each of the answer boxesIf $5 000.00 is placed on account for 6 years and earns interest at 12% p.a. compounded monthly, it would mature to the same future value as if $x is placed on an account for 4 years at 16% p.a. compounded quarterly. Find the value of x. x = $Assume that you invest $1000 for 15 years in an account that pays an interest rate of 7% per year with annual compounding. Calculate the proportion of the total value of the account that can be attributed to interest-on-interest, at the end of 15 years. * 38.06% 36.24% 25.70% 0% 100%