Question
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
- 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
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