Answer:
Please see the detailed answer below:
Step-by-step explanation:
1.)
Interest Rate = Interest / (Principal x Time)
Interest Rate = $160 / ($1,000 x 2)
Interest Rate = $160 / $2,000
Interest Rate = 0.08
Interest Rate = 8%
2.)
<em>Interest in 20 Years
</em>
Interest = Interest Rate x Principal x time
Interest = 0.09 x $2,000 x 20
Interest = $3,600
<em>Account Balance after 20 Years
</em>
Account Balance = Principal + Interest
Account Balance = $2,000 + $3,600
Account Balance = $5,600
<em>Interest in 30 Years
</em>
Interest = Interest Rate x Principal x time
Interest = 0.09 x $2,000 x 30
Interest = $5,400
<em>Account Balance after 30 Years
</em>
Account Balance = Principal + Interest
Account Balance = $2,000 + $5,400
Account Balance = $7,400
3.)
Interest = Interest Rate x Principal x time
Interest = 0.03 x $7,000 x 3
Interest = $630
Account Balance after 3 Years
Account Balance = Principal + Interest
Account Balance = $7,000 + $630
Account Balance = $7,630
