Investing Answers

Which descriptions about simple interest and yearly compounded interest are true? Select four options.

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?

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? [BLANK]

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?

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?

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?

Uta invests $345 into a simple interest investment account that pays interest at a rate of 9% a year. After several years, she withdraws her balance of $531.30. Using the formula , how many years was her money invested?

An initial amount of $800 is invested in a compound savings account with an annual interest rate of 4.5%. Using the formula , what is the balance after five years?

Three friends decide that they each want to be able to buy a new boat in five years. Vanore puts $1,000 in a savings account with a simple interest rate of 4.5%. Keir invests $1,200 in a standard savers account with a simple interest rate of 4%.Omar invests $950 in a junior achievers account with a 6% annual compound interest rate.Who will have the most money to spend on a new boat at the end of the five years? Use the formula for simple interest and for compound interest. Round to the nearest dollar.

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?