1. First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually.

If you made a deposit of $12,500 in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Difference

2. Solve for the unknown interest rate in each of the following:(Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Present Value Years Interest Rate Future Value

$790 5 $1,531

980 6 1,868

22,500 17 149,332

77,800 20 327,815

3. Solve for the unknown number of years in each of the following:(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Present Value Years Interest Rate Future Value

$350 11% $1,205

2,041 9 3,800

33,005 14 388,120

32,700 21 201,236