Concept explainers
a.
To complete: The table.
a.
![Check Mark](/static/check-mark.png)
Answer to Problem 25E
Years | Simple interest account balance | Compound interest account balance |
1 | 1050 | 1050 |
2 | 1100 | 1102.5 |
5 | 1250 | 1276.28 |
10 | 1500 | 1628.895 |
20 | 2000 | 2653.2977 |
Explanation of Solution
Given information: You deposit
Calculation: We know the simple interest account balance is
Where, P = Deposited amount, r = interest rate, t = time
The compound interest account balance
Where, P = Deposited amount, r = interest rate, t = time
Let’s complete the table,
Years | Simple interest account balance | Compound interest account balance |
1 | 1050 | 1050 |
2 | 1100 | 1102.5 |
5 | 1250 | 1276.28 |
10 | 1500 | 1628.895 |
20 | 2000 | 2653.2977 |
To make: A
![Check Mark](/static/check-mark.png)
Answer to Problem 25E
Explanation of Solution
Given information: You deposit
Calculation: Let’s plot the data,
To describe: How the graph of the simple interest balance is different from the graph of the compound interest balance.
![Check Mark](/static/check-mark.png)
Answer to Problem 25E
In the graph we can see the graph of the compound interest account increases more than the simple interest account balance.
Explanation of Solution
Given information: You deposit
Calculation: Since, The simple interest account balance less increase than the compound interest account balance.
Hence, In the graph we can see the graph of the compound interest account increases more than the simple interest account balance.
Chapter 7 Solutions
EBK PRE-ALGEBRA
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