Investing Answers

Jaina and Tomas compare their compound interest accounts to see how much they will have in the accounts after three years. They substitute their values shown below into the compound interest formula.Compound Interest AccountsNamePrincipalInterest RateNumber of YearsCompoundedJaina$3007%3Once a yearTomas$4004%3Once a yearWhich pair of equations would correctly calculate their compound interests?

Which equation demonstrates the use of a simple interest formula, , to compute the interest earned on $70 at 3% for 12 years?

Using the rule of 72, , how long will it take for the principal to double with an annual compound interest rate of 6%?

Ted and Alan are in a race to double their money. Ted feels he will win if he puts his $4,000 into a savings account offering 4.5% interest compounded annually. Alan feels he will win because he intends to put his $1,000 into a savings account offering 6% interest compounded annually. Using the rule of 72, , who will win, and how many years will it take to double his money?

Herky and Elaina want to compare their investment accounts to see how much they will have in the accounts after eight years. They substitute their values shown below into the compound interest formula.Compound Interest AccountsNamePrincipalInterest RateNumber of YearsCompoundedHerky$5005%8Once a yearElaina$4006%8Once a yearWhich pair of equations would correctly calculate their compound interests?

Veronique and Lily compare their investment accounts to see how much they will have in the accounts after seven years. They substitute their values shown below into the compound interest formula.Compound Interest AccountsNamePrincipalInterest RateNumber of YearsCompoundedVeronique$1,0005%7Once a yearLily$1,8009%7Once a yearWhich pair of equations would correctly calculate their compound interests?

Anastasia was trying to decide which investment plan would be best over 10 years. Bank A was offering 8.5% simple interest on her money using the formula . Bank B was offering 8% compounded annually using the formula . Which bank is a better investment if she has $2,000 to invest for 10 years?

Uta invests an amount into a compound interest investment account that pays 6% a year. After six years, she withdraws her total balance of $500. Using the formula , how much money did Uta initially invest?

Jon has $5,000 to invest in a savings account that has interest compounded annually. If he wants his money to double in eight years, what percent must the interest rate be on the account?

Sylvia invested $500 in an account compounded annually with an interest rate of 8%. Manuel invested $600 in an account with a compound interest rate of 7.25%. Using the rule of 72, , who will double their money first?