Simple and Compound Interest a. For each of the following notes, calculate the simple interest due at the end of the term.

Round to the nearest dollar.

Note	Principal	Rate	Term
1	$20,000	2%	6 years
2	$20,000	4%	4 years
3	$20,000	6%	3 years

Note 1	Answer
Note 2	Answer
Note 3	Answer

b. Compute the amount of interest due at the end of the term for each of the above notes assuming interest is compounded annually. Use Excel or a financial calculator for your computations. Round answers to the nearest dollar.

Note 1	Answer
Note 2	Answer
Note 3	Answer