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Problem 6: You are trying to explain to a friend the power of compound interest. So you use the following example: You will invest $500 into two bank accounts which each pay 6% interest per year, but the first (Account A) pays simple interest and the second (Account B) pays the interest compounded yearly. a) How much is in each account after 3 years? b) Use the table below to demonstrate the difference between simple and compound interest BANK ACCOUNT A Amount in Account $500 BANK ACCOUNT B Amount in Account $500 Year Year 1 3 3 2.

Problem 6: You are trying to explain to a friend the power of compound interest. So you use the following example: You will invest $500 into two bank accounts which each pay 6% interest per year, but the first (Account A) pays simple interest and the second (Account B) pays the interest compounded yearly. a) How much is in each account after 3 years? b) Use the table below to demonstrate the difference between simple and compound interest BANK ACCOUNT A Amount in Account $500 BANK ACCOUNT B Amount in Account $500 Year Year 1 3 3 2.

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Problem 6: You are trying to explain to a friend the power of compound interest. So you use the following example: You will invest $500 into two bank accounts which each pay 6% interest per year, but the first (Account A) pays simple interest and the second (Account B) pays the interest compounded yearly. a) How much is in each account after 3 years? b) Use the table below to demonstrate the difference between simple and compound interest BANK ACCOUNT A BANK ACCOUNT B Amount in Account $500 Year Amount in Account Year $500 1 3 3 Problem 7: Many people struggle over the decision of acquiring a vehicle. Usually the three main choices involve buying a used vehicle, buying a new vehicle or leasing a new vehicle. a) In the table below provide two positive aspects (pros) and two negative aspects (cons) for each of the options. Buying Used Buying New Leasing New Pros Cons b) You own a car that consumes diesel fuel at a rate of 6.7L/100km. On a 25O0km trip to the East Coast you estimate that the average fuel price will be $0.93/L. What will be your estimated fuel cost to drive the 2500km trip?
Transcribed Image Text:Problem 6: You are trying to explain to a friend the power of compound interest. So you use the following example: You will invest $500 into two bank accounts which each pay 6% interest per year, but the first (Account A) pays simple interest and the second (Account B) pays the interest compounded yearly. a) How much is in each account after 3 years? b) Use the table below to demonstrate the difference between simple and compound interest BANK ACCOUNT A BANK ACCOUNT B Amount in Account $500 Year Amount in Account Year $500 1 3 3 Problem 7: Many people struggle over the decision of acquiring a vehicle. Usually the three main choices involve buying a used vehicle, buying a new vehicle or leasing a new vehicle. a) In the table below provide two positive aspects (pros) and two negative aspects (cons) for each of the options. Buying Used Buying New Leasing New Pros Cons b) You own a car that consumes diesel fuel at a rate of 6.7L/100km. On a 25O0km trip to the East Coast you estimate that the average fuel price will be $0.93/L. What will be your estimated fuel cost to drive the 2500km trip?
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