# Math

posted by Preia

Using the formula. I =Prt ,calculate the simple interest where t=1/n and n is the number of periodd per year for compounding.

You have \$20,000 and wished to invest it in one of
two ways.
Option A: You may invest it in a certificate of deposit for 10 years at an interest rate of 4% compounded monthly. (n =12 t =1/12
Option B: You may invest it in a certificate of deposit for 5 years at an interest rate of 8% compounded daily. (n = 360 t = 1/360)
Calculate the amount of interest that you would make each investment.

1. Henry

A.12mo/yr. * 10yrs. = 120 months
I = Po*r*t = 20,000*(0.04/12)*120 =

B. 360days/yr * 5yrs. = 1800 days
I = 20,000*(0.08/360)*1800 =

## Similar Questions

1. ### Math

Gina plans to invest \$12,000, part at 4% simple interest and the rest at 6% simple interest. What is the most she can invest at 4% and still be guranteed at least \$650 in interest per year?

Part I: As a financial planner a client comes to you for investment advice. After meeting with him and understanding his needs, you offer him the following two investment options: Option 1 (refer to section on Mathematics of Finance …
3. ### finance

Rob has \$1,000 to invest for 120 days and is considering two options. Option 1: He can invest the money in a 120-day GIC paying simple interest of 4.48%. Option 2: He can invest the money in a 60-day GIC paying simple interest of 4.50% …
4. ### Algebra

A grandmother is looking for a plan to finance her new grandchildâ€™s college education. She has \$25,000 to invest. Search the internet and locate a long-range investment plan, CD, Savings Bond, etc, for the grandmother. The plan is …
5. ### algebra

Last year, Susan had 30,000 to invest. She invested some of it in an account that paid 8% simple interest per year, and she invested the rest in an account that paid 7% simple interest per year. After one year, she received a total …
6. ### ALGEBRA / MATH / FINANCIAL

PLEASE HELP.. HERE'S THE QUESTION.... RYAN IS GOING TO INVEST \$4000 INTO 2 INVESTMENT OPTIONS. ONE OPTION PAYS 3% AND THE OTHER OPTION PAYS 3.5% SIMPLE INTEREST. HOW MUCH DID RYAN INVEST IN EACH OPTION IF THE INTEREST EARNED IN THE …
7. ### Math 0098

Last year, Deon had \$20,000 to invest. He invested some of it in an account that paid 6% simple interest per year, and he invested the rest in an account that paid 10% simple interest per year. After one year, he received a total of …
8. ### Simple Interest

Last year, Ivan had \$20,000 to invest. He invested some of it in an acount that paid 9% simple interest per year, and he invested the rest in an account that paid 7% simple interest per year. After one year, he received a total of …
9. ### Algebra

last year, justin had 30,000 to invest. he invested some of it in an account that paid 5% simple interest per year, and he invested the rest in an account that paid 10% simple interest per year. After one year, he recieved a total …
10. ### math

Last year, Carmen had \$20,000 to invest. She invested some of it in an account that paid 9% simple interest per year, and she invested the rest in an account that paid 5% simple interest per year. After one year, she received a total …

More Similar Questions