Question

2. A bank representative studies compound interest, so she can better serve

Answer 1

Answer:

Step-by-step explanation:

Given that a  bank representative studies compound interest, so she can better serve  customers. She analyzes what happens when $2,000 earns interest several  different ways at a rate of 2% for 3 years.

a) the interest if it is computed using simple interest. 12.00

=$\frac{2000(3)(12)}{100} \\=720$ dollars

b) the interest if it is compounded annually.

=$2000(1.12)^3-2000\\= 809.86$ dollars

c) the interest if it is compounded semiannually

=$2000(1.06)^6 -2000\\= 837.04$

d) the interest if it is compounded quarterly.

=$2000(1.03)^12 -2000\\= 851.52$

e) the interest if it is compounded monthly.

=$2000(1.01)^24 -2000\\= 861.54$