1. Mr. Davis deposited $1,250 into an account. He made no additional deposits or
withdrawals. Mr. Davis earned 4.25% annual simple interest on the money in the
account
What was the balance in dollars and cents in Mr. Davis' account at the end of 4 years?
2. Imagine you have invested $800 into a savings account that earns 3.5% interest
compounded annually. What is the balance of your account after 5 years without more
deposits or withdrawals?
3. An employee put $5,000.00 in a retirement account that offers 9% interest compounded
annually. The employee makes no additional deposits or withdrawals. What is the
amount of interest this account will earn in 5 years? (Think through this carefully.)
A) What is the amount in the account?
B) What is the interest earned in 5 years?
