1. First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest compounded annually.

If you made a $72,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 10 years?

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Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, an auction house sold a sculpture at auction for a price of $10,211,500. Unfortunately for the previous owner, he had purchased it in 2000 at a price of $12,177,500.

What was his annual rate of return on this sculpture?

Solve for the unknown interest rate in each of the following (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Present Value Years Interest Rate Future Value 330 422 1,571 450 48,000 19 266,917 803,425 47.261 25