October 11 TEST Review

A deposit of $1,800 is made into each of two bank accounts. No additional deposits or withdrawals will be made for 7 years.

• Account I earns 6.2% annual simple interest.

• Account II earns 6.2% interest compounded annually.

Which equation will you use to find the balance of Account I first?

A deposit of $1,800 is made into each of two bank accounts. No additional deposits or withdrawals will be made for 7 years.

• Account I earns 6.2% annual simple interest.

• Account II earns 6.2% interest compounded annually.

What is the balance of the Account I?

• $2,742.48

• $742.48

• $2,581.20

• $781.20

A deposit of $1,800 is made into each of two bank accounts. No additional deposits or withdrawals will be made for 7 years.

• Account I earns 6.2% annual simple interest.

• Account II earns 6.2% interest compounded annually.

What is the balance of Account II?

• $2,742.48

• $742.48

• $2,581.20

• $781.20

A deposit of $1,800 is made into each of two bank accounts. No additional deposits or withdrawals will be made for 7 years.

• Account I earns 6.2% annual simple interest.

• Account II earns 6.2% interest compounded annually.

What is the difference between the balances of the two accounts?

• $38.72

• $161.28

• $6.28

• $105.28