NEW 2024 simple and compound interest

A business owner opens a new investment account with a $10,000.00 deposit:

-The investment account earns 2.5% interest, compounded annually.

-The business owner does not plan to make any deposits or withdrawals.

How much interest will the investment account earn at the end of the first and second year?

Move the correct answer to each box. Not all answers will be used.

The account will earn ​ (a)   in interest at the end of the first year.

At the end of the second year, the account will have earned a total of ​ ​ (b)   in interest.

Monica wants to open a savings account with a deposit of $3,000. Monica will not make any additional deposits or withdrawals after she opens the account. Her bank offers two different savings accounts.

• -Account X pays 2.1% simple annual interest.

• -Account Y pays 2.4% interest compounded annually.

• Which statement about these accounts at the end of 5 years is true?

• Account Y will earn how much more money than Account X?

Larry put $1,287 into a savings account 8 years ago.

-The account earned 4% simple annual interest.

-He made no additional deposits or withdrawals

Based on this information, what is the balance in dollars and cents in Larry's savings account at the end of these 8 years?

A student's parents invested $5,000 in a college savings account that pays 4.85% annual simple interest. No additional deposits or withdrawals will be made.

How much interest will be earned on the account at the end of 15 years?

Ben deposits $1,750 into each of his two savings accounts.

-Account I earns 2.75% annual simple interest.

-Account II earns 2.75% interest compounded annually.

Ben does not make any additional deposits or withdrawals. What is the difference between the interest Ben will earn in Account I and the interest Ben will earn in Account II at the end of 2 years?

(a)  

Mr. Jenkins deposited $1,250 into an account. He made no additional deposits or withdrawals. Mr. Jenkins earned 4.25% simple interest on the money in the account. What was the balance in dollars and cents in Mr. Jenkins's account at the end of 4 years?

An employee put $5,000.00 in a retirement account that offers 9% interest compounded annually. The employee makes no additional deposits or withdrawals. Which amount is closest to the interest the employee will have earned at the end of 5 years? (Round your answer to the nearest hundredth)

An investor puts $2,500 into a life insurance policy that pays 8.5% simple annual interest. If no additional investment is made into the policy, how much accumulated interest should the investor expect at the end of 10 years?