Lian puts $2,000 in the bank with a 3% annual interest rate compounded annually. If Lian does not touch his money, how much money will he have after two years?
$2,000.06
$2,060.00
$2,120.00
$2,121.80
To calculate the amount of money Lian will have after two years with 3% interest compounded annually, you can use the formula:
A = P(1 + r)^n
Where:
A is the amount of money after the specified time period
P is the principal amount (initial deposit)
r is the interest rate
n is the number of compounding periods
In this case, Lian's initial deposit is $2,000, the interest rate is 3% (or 0.03 as a decimal), and the number of compounding periods is 2 (since it's compounded annually for 2 years).
A = $2,000(1 + 0.03)^2
A = $2,000(1.03)^2
A ≈ $2,120
Therefore, Lian will have approximately $2,120 after two years. Therefore, the correct answer is choice C: $2,120.00.
Luke deposits $3,500 into each of two savings accounts.
Account 1 earned 3% annual simple interest.
Account 2 earned 3$ interest compounded annually.
Luke does not make any additional deposits or withdrawals. What is the sum of the balances of Account 1 and Account 2 at the end of 4 years?
$7,859.28
$3,920.00
$3,939.28
$4,359.28
For Account 1, since it earns simple interest, we can use the formula:
A = P(1 + rt)
Where:
A is the amount of money after the specified time period
P is the principal amount (initial deposit)
r is the interest rate
t is the time in years
In this case, the principal amount for Account 1 is $3,500, the interest rate is 3% (or 0.03 as a decimal), and the time period is 4 years.
A = $3,500(1 + 0.03 * 4)
A = $3,500(1 + 0.12)
A = $3,500 * 1.12
A = $3,920
Therefore, Account 1 will have $3,920 after 4 years.
For Account 2, since it earns interest compounded annually, we can use the formula:
A = P(1 + r)^n
Where:
A is the amount of money after the specified time period
P is the principal amount (initial deposit)
r is the interest rate
n is the number of compounding periods
In this case, the principal amount for Account 2 is also $3,500, the interest rate is 3% (or 0.03 as a decimal), and the number of compounding periods is 4 (since it's compounded annually for 4 years).
A = $3,500(1 + 0.03)^4
A = $3,500(1.03)^4
A ≈ $3,939.28
Therefore, Account 2 will have approximately $3,939.28 after 4 years.
To find the sum of the balances of Account 1 and Account 2, we simply add their respective amounts:
$3,920 + $3,939.28 ≈ $7,859.28
Therefore, the correct answer is choice A: $7,859.28.
What is the surface area of an ice cube that has 4 cm sides?
The surface area of an ice cube can be calculated by finding the area of each face and adding them together. Since an ice cube has 6 faces (all of them are squares), the surface area can be found using the formula:
Surface Area = 6 * side^2
Given that each side of the ice cube is 4 cm, we can substitute this value into the formula:
Surface Area = 6 * 4^2
Surface Area = 6 * 16
Surface Area = 96
Therefore, the surface area of an ice cube with 4 cm sides is 96 square cm.
Two customers took out loans from a bank.
Jarrod took out a 5-year loan for $4,000 and paid 3.2% annual simple interest.
Harold took out a 7-year loan for $4,000 and paid 3.9% annual simple interest.
What is the difference between the amount of interest Jarrod and Harold paid for their loans???
$1092
$640
$452
$1732
To find the difference between the amount of interest Jarrod and Harold paid for their loans, we can use the formula for simple interest:
Interest = Principal * Rate * Time
For Jarrod's loan, the principal amount is $4,000, the annual interest rate is 3.2% (or 0.032 as a decimal), and the time period is 5 years.
Interest for Jarrod = $4,000 * 0.032 * 5
Interest for Jarrod = $640
For Harold's loan, the principal amount is also $4,000, the annual interest rate is 3.9% (or 0.039 as a decimal), and the time period is 7 years.
Interest for Harold = $4,000 * 0.039 * 7
Interest for Harold = $1,092
The difference between the amount of interest paid by Jarrod and Harold is:
$1,092 - $640 = $452
Therefore, the correct answer is choice C: $452.
Tuition for one year at a state university is about $30,000. Nyella would like to attend this university and will save money each month for the next 3 years. Her parents will give her $12,500 for her first year of tuition. What plan shows the minimum amount of money Nyella must save to have enough money for her first year of tuition.
Save $833.33 per month for 3 years
Save $486.11 per month for 3 years
Save $1,180.56 per month for 3 years
Save $364.58 per month for 3 years.
To calculate the minimum amount of money Nyella must save each month for 3 years to have enough money for her first year of tuition, we'll need to consider the total amount she needs to save and the time period she has to save.
The total amount Nyella needs for her first year of tuition is $30,000 - $12,500 (already provided by her parents) = $17,500.
To find the minimum monthly savings, we divide the total amount needed by the number of months she has to save, which is 3 years * 12 months/year = 36 months.
Minimum monthly savings = $17,500 / 36 months ≈ $486.11
Therefore, the correct answer is choice B: Save $486.11 per month for 3 years.