How much simple interest is earned after 5 years if a bank lends $10,000 to a business for 8 percent a year?(1 point
To calculate the simple interest earned, we can use the formula:
Simple Interest = Principal * Rate * Time
Here, the principal is $10,000, the rate is 8% (or 0.08), and the time is 5 years.
Simple Interest = $10,000 * 0.08 * 5
Simple Interest = $4,000
Therefore, the amount of simple interest earned after 5 years is $4,000.
How much simple interest is earned after 3 years if a person invests $2,000 at 7 percent a year?(1 point)
$
To calculate the simple interest earned, we can use the formula:
Simple Interest = Principal * Rate * Time
Here, the principal is $2,000, the rate is 7% (or 0.07), and the time is 3 years.
Simple Interest = $2,000 * 0.07 * 3
Simple Interest = $420
Therefore, the amount of simple interest earned after 3 years is $420.
Kendra signed a contract to play professional soccer. She got a $100,000 signing bonus, and she decided to invest the bonus in a money market account that pays 15% interest compounded yearly. She plans to use the signing bonus when she retires in 20 years. How much will her investment be worth in 20 years? Round the answer to two decimal places.(1 point)
To calculate the future value of Kendra's investment, we can use the formula for compound interest:
Future Value = Principal * (1 + Rate)^Time
Here, the principal is $100,000, the rate is 15% (or 0.15), and the time is 20 years.
Future Value = $100,000 * (1 + 0.15)^20
Future Value = $100,000 * (1.15)^20
Future Value ≈ $1,304,856.95
Therefore, Kendra's investment will be worth approximately $1,304,856.95 after 20 years.
wrong
Apologies for the incorrect response. Let's attempt the calculation again:
To calculate the future value of Kendra's investment with compound interest, we use the formula:
Future Value = Principal * (1 + Rate)^Time
In this case, the principal is $100,000, the rate is 15% (or 0.15), and the time is 20 years.
Future Value = $100,000 * (1 + 0.15)^20
Future Value = $100,000 * (1.15)^20
Future Value ≈ $1,073,038.55
Therefore, Kendra's investment will be worth approximately $1,073,038.55 after 20 years, rounded to two decimal places.
wrong
Simplify
Apologies for the mistake once again. To simplify, we can directly provide the future value without showing the calculation steps:
After 20 years, Kendra's investment of $100,000 at an annual interest rate of 15% compounded yearly will be worth approximately $743,040.77.