Aria is investing $6,700 of her savings from her summer job for her college fund. She is planning to invest the amount for 3 years and can choose between simple interest at 6.5% and compound interest at 6%. Find the difference between the two interest earning types to help Aria decide which investing option is best for her.(1 point)
Responses
Aria should invest with 6.5% simple interest because it will result in $26.69 more in interest earnings.
Aria should invest with 6.5% simple interest because it will result in $26.69 more in interest earnings.
Aria should invest with 6% compound interest because it will result in $86.76 more in interest earnings.
Aria should invest with 6% compound interest because it will result in $86.76 more in interest earnings.
Aria should invest with 6.5% simple interest because it will result in $187.26 more in interest earnings.
Aria should invest with 6.5% simple interest because it will result in $187.26 more in interest earnings.
Aria should invest with 6% compound interest because it will result in $73.81 more in interest earnings.
To find the difference between the two interest earning types, we need to calculate the interest earnings for each option.
For simple interest at 6.5%, the formula is: Interest = Principal * Rate * Time.
The interest earned with simple interest is: $6,700 * 0.065 * 3 = $1,301.50.
For compound interest at 6%, the formula is: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.
The interest earned with compound interest is: $6,700 * (1 + 0.06/1)^(1 * 3) - $6,700 = $1,214.50.
The difference between the two interest earning types is: $1,301.50 - $1,214.50 = $87.
Therefore, the correct response is: Aria should invest with 6.5% simple interest because it will result in $87 more in interest earnings.
Analyze the incentive as shown here to find the total price when two medium one-topping pizzas are purchased with the incentive.
“1 one-topping medium pizza for $7.99 or 2 one-topping medium pizzas for $6.49 each.”
(1 point)
Responses
$14.48
$14.48
$3
$3
$15.98
$15.98
$12.98
To find the total price when two medium one-topping pizzas are purchased with the incentive, we need to compare the cost of buying two pizzas individually with the cost of buying two pizzas with the incentive.
Option 1: Buying two pizzas individually (each for $7.99)
Total cost = 2 * $7.99 = $15.98
Option 2: Buying two pizzas with the incentive (each for $6.49)
Total cost = 2 * $6.49 = $12.98
Therefore, the correct response is: $12.98.