20)

Solve the problem.

Kerry invests$553in a savings account that earns3.4% compounded annually. Andy invests$553in a savings account that earns5% compounded annually. How much is in each of their accounts after 10 years and after 20 years?

(5pts)

a. Kerry:$772.56;$1079.28

Andy:$900.78;$1467.27

b. Kerry:$722.59;$944.18

Andy:$817.03;$1207.13

c. Kerry:$747.15;$1043.80

Andy:$857.88;$1397.40

d. Kerry:$825.98;$825.98

Andy:$993.11;$993.11

21)

Solve the problem.

A small company borrows $30,000at4% compounded monthly. The loan is due in6years. How much interest will the company pay?

(5pts)

a. $38,122.26

b. $7995.60

c. $8122.26

d. $8092.04

22)

Solve the problem.

John Lee's savings account has a balance of $3662. After3years, what will the amount of interest be at2% compounded semiannually?

(5pts)

a. $225.29

b. $219.72

c. $110.96

d. $224.14

23)

Solve the problem.

Determine the effective annual yield for $1 invested for 1 year at2.5% compounded quarterly.

(5pts)

a. -7.48%

b. 12.52%

c. 1.25%

d. 2.52%