Home work 1 1. John invested $5,000 in a savings account that earns an annual interest rate of 4%. Calculate the simple interest earned after 2 years. 2. Emily invested some money in a savings account that earned $240 in interest over a period of 3 years. The interest rate was 6% per annum. Determine the principal amount she initially invested. 3. David deposited $2,000 in a fixed deposit account that offers an annual interest rate of 5%. Calculate the maturity value after 4 years. 4. Alice will receive $3,500 in 3 years as a future payment from an investment that offers an annual interest rate of 4%. Calculate the present value (principal) of this future payment. 5. What kind of transactions involve simple interest.