3×(60+7)
(3×30) + (3×7)
90 + 21 = 111
Answer:
The interest generated will be $ 51.20.
Step-by-step explanation:
To determine the compound interest on the account with 0.01% interest rate in 5 years compounded quarterly with an initial deposit of $ 1,000, the following calculation must be performed:
1,000 x (1 + 0.01 / 4) ^ 4x5 = X
1,000 x (1 + 0.0025) ^ 20 = X
1,000 x 1.0025 ^ 20 = X
1,000 x 1.05120 = X
1,051.20 = X
1,051.20 - 1,000 = 51.20
Therefore, the interest generated will be $ 51.20.
Answer:
The 6% simple interest account earns more interest in 2 years.
Step-by-step explanation:
You can compare the multipliers in the interest formulas.
For simple interest, the amount in the account (A) starting with principal P and earning at rate r for t years will be ...
A = P(1 +rt)
For the values given, r=.06 and t=2, the multiplier is ...
1 +rt = 1 +.06·2 = 1.12
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For interest compounded annually, the amount will be ...
A = P(1 +r)^t
For the given values, the multiplier is ...
(1+r)^t = (1.04)^2 = 1.0816
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Since 1.12 > 1.0816, the account earning simple interest will earn more interest.
