1)
a)
P = 1500, r = 4% = 0.04, n = 5
He shall have $1824.98 in his account after 5 years
b)
Here P = 1500 , r = 4% = 0.04, n = 5 but simple interest
So
Interest = $300
Amount in his account after 5 years = 1500 + 300 = $1800
c)
First one shall yield a better income and by 1824.98-1800 = $24.98
2)
a)
P= $2000, r = 8% = 0.08 so quaterly = 0.08/4 = 0.02, n = 1 year
There shall be $2164.86 after 1 year
b)
P = 2000, r= 8%=0.08 and n = 1 for simple interest
Amount after 1 year shall be 2000 + 160= $2160
c)
First option is a better option.
The difference is 2164.86 - 2160 = $4.86
3)
a)
Bank A
P= 3200, r = 3.5%= 0.035, n = 3 years for simple interest
Interest earned in Bank A = $336
b)
Bank B
P = 3200, r = 3.4% = 0.034, n= 3
Interest earned = 3537.62 - 3200 = $337.62
c)
Tyler must choose Bank B as it fetches greater interest
d)
The difference in interest = 337.62 - 336 = $1.62