Interest Earned on an Initial $100 Saved at 8 Percent Interest Rate Year Simple Interest Adds 1 $8.00 2 $8.00 3 $8.00 4 $8.00 5 $8.00 6 $8.00 7 $8.00 8 $8.00 9 $8.00 Total Saving Compound Interest Total Saving Using Using Adds Compound Interest Interest $108.00 $8.00 $108.00 $116.00 $9.00 $117.00 $124.00 $9.00 $126.00 $132.00 $10.00 $136.00 $140.00 $11.00 $147.00 $148.00 $12.00 $159.00 $156.00 $12.00 $171.00 $164.00 $14.00 $18.00 $172.00 $15.00 $200.00 Now that you understand interest and saving, let's work five problems. Upload your ans Assignment link when you have finished. tract How much interes Now that you understand interest and saving, let's work five problems. Upload your answers using the Submit Assignment link when you have finished. 1. You wish to invest $500. You are going to earn 5% simple interest. How much interest will you earn? 2. How long will it take you to double your initial investment if you are paid 9% interest annually? 3. This question is "tricky", but you will be able to answer it. You need to think about the process and information you have learned already. Apply your knowledge. Here goes... You deposit $500 at 6% interest annually. After 6 months, how much money will you earn? 4. Using the Rule of 72, if your money is expected to double in 12 years, you are earning approximately how much interest annually? 5. If you deposited $750 in a savings account paying 8%, how much interest would you earn in nine months? (Little tricky again but apply your knowledge - remember the formula of interest = amount deposited X interest rate X time of investment think how long 9 months is out of a year or 12 months)