The table below shows the future value of a certificate of deposit (CD) after x years Eric states the applied interest is simple
interest true or false?
2 answers:
Answer:
Option B.
Step-by-step explanation:
Eric states the applied interest is simple interest. We need to check whether the this statement is true or false.
In simple interest, the amount of deposit increased at a constant rate. It means the difference between future values of any two consecutive years will same.
Difference between future values of first two years.
Difference between future values of 2nd and 3rd year is
Since d₁≠d₂, therefore, the given statement is false.
Thus, the correct option is B.
You might be interested in
Answer:
Option C.
Step-by-step explanation:
The given expression is
We need to find the factored form of the given expression.
The given expression can be rewritten as
It is clear that is common.
Taking out common factors, we get
It is the factored form of the given expression.
Hence, the correct option is C.
Answer:
Step-by-step explanation:
<u>Compound Interest</u>
This is a well-know problem were we want to calculate the regular payment R needed to pay a principal P in n periods with a known rate of interest i.
The present value PV or the principal can be calculated with
Solving for R
Where Fa is computed by
We'll use the provided values but we need to convert them first to monthly payments
Thus, each payment is