Please Explain

Each of the following questions deals with compound or continuous interest. Show your work in the space below each problem. Round all answers to the hundredth place. Use appropriate units when writing your answers. 1. $700 is deposited into an account that earns 4% interest annually. If no other deposits are made into the account, what is the future value after 6 years? 2. A person wishes to deposit a sum of money into an account that earns 3.5% interest annually. The wish is to have a future value of $1,000 in the account after 10 years. If no other deposits are made, how much should be deposited? 3. A person deposits $500 into an account that earns 4.75% annually. If no other deposits are made, how much interest will the account have earned after 12 years? 4. $250 is deposited into an account that earns 3.23% interest compounded quarterly. If no other deposits are made into the account, what is the future value after 7 years? 5. $1,250 is invested into an account that earns 5.2% interest compounded daily. If no other deposits are made into the account, what is the value after 15 years? 6. A person wishes to invest $2,000. The person has two options. Option A is an account that earns 3.9% interest compounded quarterly. Option B is an account that earns 3.8% interest compounded monthly. Suppose no other deposits are made into this investment. a. What is the interest earned from Option A? b . What is the interest earned from Option B? c. Which option earns the most interest and how much is the difference? 7. S750 is deposited into a banking account that earns 3% interest compounded continuously. What is the value of the account after 10 years? A high school student graduates and is given several cash presents. The same student also works after school to earn money. The student decides to take some advice and deposit all of the money. $2:450, into an investment account that pays 5. 75% interest compounded continuously. If the student deposits no additional money into the investment account, what is the value at