Question

PLZZZ HELP
q1  Selena has placed $500 in an account that pays simple interest of 5 percent annually. Selena will have earned $ .00 in interest by the end of the year.
q2  Suki has placed $800 in an account that pays 4 percent interest compounded quarterly. At the end of two years (eight quarters), the balance in the account will be $ . That means Suki will have earned $ in interest during that time. (Round your answers to the nearest cent.)
What will be the balance in the account at the end of two years (eight quarters)? How much interest will Suki have earned during that time? (Round your answers to the nearest cent.)
q3  Jessica is considering putting $50 into a money market account that pays a 4 percent annual interest rate. It will take year(s) for the money to double to $100. (Use the Rule of 72 to find the answer.)

Answer 1

Answer:

Q1. Selena would have earned $25 in interest by the end of the year.

We calculate interest using the Simple Interest (SI) formula which is :

$SI = P*N*R$

where

P = Principal or amount deposited

N = No. of years of deposit

R= Interest rate per annum

Substituting the values we have,

$SI = 500 * 1 * 0.05 = 25$

Q2. At the end of two years (eight quarters), the balance in the account will be $866.28 . That means Suki will have earned $66.28 in interest during that time.

We have

Amount deposited (P) = $800

Annual interest rate (i)= 4%

No. of compounding periods in a year (n)= 4

No. of years (t)= 2

We calculate amount at the end of two years with the following formula:

$\mathbf{A = P * \left (1+\frac{i}{n}\right )^{nt}}$

$\mathbf{A = 800 * \left (1+\frac{0.04}{4}\right )^{4*2}}$

$\mathbf{A = 800 * \left (1.01)^{8}} = 866.2854$

$Compound interest = Total amount received - Amount deposited$

[tex]Compound interest = 866.2853645 - 800 = 66.2853645[/tex]

Q3. It will take 18 years for the money to double to $100.

The rule of 72 is used for determining the time period in which an investment doubles itself. We use this rule by dividing 72 by the interest rate.

So, $\frac{72}{4} = 18 years$

Answer 2

The interest Selena would earn at the end of the year is $25.

At the end of two years, the balance in the account would be  $866.29. The interest Suki earned is  $66.29.

The money put in the money market account would double in 18 years.

What is the simple interest earned by Selena?

Simple interest = amount deposited x interest rate x time

$500 x 0.05 = $25

What is the balance of Selena's account?

The formula that can be used to determine the balance is:

FV = P (1 + r)^nm

• FV = Future value
• P = Present value
• R = interest rate
• m = number of compounding
• N = number of years

$800 ( 1 + 0.04/4)^8 = $866.29

Interest = $866.29 - $800 = $66.29

When would the money in Jessica's account double?

Doubling time = 72 / interest rate

72/4 = 18 years

To learn more about future value, please check: https://brainly.com/question/18760477