1)
a)
P = 1500, r = 4% = 0.04, n = 5
![A = 1500 (1+0.04)^5= 1824.98](https://tex.z-dn.net/?f=%20A%20%3D%201500%20%281%2B0.04%29%5E5%3D%201824.98%20)
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
![I=PRn= 1500(.04)(5)=300](https://tex.z-dn.net/?f=%20I%3DPRn%3D%201500%28.04%29%285%29%3D300%20)
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
![A = P(1+r)^{4n} =2000(1+0.02)^4 =2164.86](https://tex.z-dn.net/?f=%20A%20%3D%20P%281%2Br%29%5E%7B4n%7D%20%20%3D2000%281%2B0.02%29%5E4%20%3D2164.86%20)
There shall be $2164.86 after 1 year
b)
P = 2000, r= 8%=0.08 and n = 1 for simple interest
![I=PRn = 2000(0.08)(1)=160](https://tex.z-dn.net/?f=%20I%3DPRn%20%3D%202000%280.08%29%281%29%3D160%20)
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
![I =3200(0.035)(3)=336](https://tex.z-dn.net/?f=%20I%20%3D3200%280.035%29%283%29%3D336%20%20)
Interest earned in Bank A = $336
b)
Bank B
P = 3200, r = 3.4% = 0.034, n= 3
![A= P(1+r)^n=3200(1+0.034)^3=3537.62](https://tex.z-dn.net/?f=%20A%3D%20P%281%2Br%29%5En%3D3200%281%2B0.034%29%5E3%3D3537.62%20)
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