George Green wishes to invest $8000.00 that he saved from his summer job. His bank offers 3.75% for a one-year term investment or 3.5% for a six-month term. a)How much will George receive (capital plus interest) after one year if he invests at the one-year rate? Round to nearest one. b)How much will he receive (capital plus interest) after one-year if he invests for six months at a time at 3.5% each time? This means George took the interest from the first investment transaction and included it in the principal for the second transaction. Round to nearest 100th. c)What would the one-year rate have to be to yield the same amount of interest when investing for six months at a time at 3.5% each time? Give your answer as a percentage round to nearest 100th
George Green wishes to invest $8000.00 that he saved from his summer job. His bank offers 3.75% for a one-year term investment or 3.5% for a six-month term.
a)How much will George receive (capital plus interest) after one year if he invests at the one-year rate? Round to nearest one.
b)How much will he receive (capital plus interest) after one-year if he invests for six months at a time at 3.5% each time? This means George took the interest from the first investment transaction and included it in the principal for the second transaction. Round to nearest 100th.
c)What would the one-year rate have to be to yield the same amount of interest when investing for six months at a time at 3.5% each time? Give your answer as a percentage round to nearest 100th .
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