I was wondering if I could check my answers with someone. I'm a bit confused with interest. I put stars next to the answers I chose. Thank you.

An interest rate is a special type of (1 point)

loan.
**price.
bank.
service.

2.
How does a compound interest rate differ from a simple interest rate? (1 point)

***Compound interest rates pay more interest over time.
Compound interest rates are calculated only once a year.
Compound interest rates are usually lower than simple interest rates.
Compound interest rates apply to home mortgages only.

3.
Rising demand for a certain type of car will probably lead to (1 point)

lower interest rates for all types of vehicles.
lower interest rates for that type of car.
***higher interest rates for all types of vehicles.
higher interest rates for that type of car.

4.
Rohan has $100.00 that he wants to save in a bank. Bank A offers two types of savings accounts. One has a 5% simple interest rate, and the other has a 4.8% compound interest rate. Bank B also offers two types of savings accounts. One has a 3% simple interest rate, and the other has a 4% compound interest rate. Which account should Rohan choose in order to earn the most interest? (1 point)

Bank A simple interest account
***Bank A compound interest account
Bank B simple interest account
Bank B compound interest account

these are the correct answers trust me.

1. B
2. A
3. D
4. B

trust me u will get a 100%

Miranda is right!!!!!

1.B
2.A
3.D
4.B

by the way you guys shouldn't be so mean

Yes They Are True!

1. An interest rate is a special type of (1 point)

- The correct answer is **price**.

Explanation: An interest rate refers to the amount of money charged as a percentage of the principal amount. It is the price you pay for borrowing money or the price you receive for lending money.

2. How does a compound interest rate differ from a simple interest rate? (1 point)
- The correct answer is ***Compound interest rates pay more interest over time***.

Explanation: Compound interest is calculated based on both the initial principal amount and the accumulated interest from previous periods. This means that the interest earned on the principal gets added to the total amount, and future interest calculations are based on the new increased balance. In contrast, simple interest is calculated only on the initial principal amount and does not consider the accumulated interest from previous periods.

3. Rising demand for a certain type of car will probably lead to (1 point)
- The correct answer is ***higher interest rates for all types of vehicles***.

Explanation: When demand for a certain type of car increases, lenders might raise interest rates to capitalize on the higher demand. This is because they can expect more borrowers for vehicle loans, and higher interest rates can help them maximize their profits.

4. Which account should Rohan choose in order to earn the most interest? (1 point)
- The correct answer is ***Bank A compound interest account***.

Explanation: A compound interest account, specifically the one offered by Bank A with a 4.8% interest rate, would allow Rohan to earn more interest over time. Although Bank B's simple interest rate of 3% may seem lower, the power of compound interest would result in higher overall interest earnings with Bank A's compound interest account.

wrong