d. compounded interest calculation\nexample:\nhow much interest will you earn on a two - year $6,000 cd that…

d. compounded interest calculation\nexample:\nhow much interest will you earn on a two - year $6,000 cd that will pay annual interest of 5%? the first years interest will remain in the cd and also earn interest during the second year.\nstep 1: identify p, r, and t.\np = 6000\nr = 5%\nt=\nstep 2: apply the formula to calculate interest.\n$a = p(1+\frac{r}{n})^{nt}$\ne. individual practice:\n1. using the simple interest formula: how much interest would be accrued for $3,000 at 3% for one year?\n2. using the simple interest formula: how much interest would be accrued for $3,000 at 3% for three years?\n3. using compound interest: how much interest would be accrued for you have $800 at 4% interest for 3 years?

d. compounded interest calculation\nexample:\nhow much interest will you earn on a two - year $6,000 cd that will pay annual interest of 5%? the first years interest will remain in the cd and also earn interest during the second year.\nstep 1: identify p, r, and t.\np = 6000\nr = 5%\nt=\nstep 2: apply the formula to calculate interest.\n$a = p(1+\frac{r}{n})^{nt}$\ne. individual practice:\n1. using the simple interest formula: how much interest would be accrued for $3,000 at 3% for one year?\n2. using the simple interest formula: how much interest would be accrued for $3,000 at 3% for three years?\n3. using compound interest: how much interest would be accrued for you have $800 at 4% interest for 3 years?

Answer

Explanation:

Step1: Recall simple - interest formula for question 1

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $P=$3000$, $r = 0.03$ (since $3%=0.03$), and $t = 1$. $I=3000\times0.03\times1$

Step2: Calculate the simple interest for question 1

$I = 90$

Step3: Recall simple - interest formula for question 2

Using the same formula $I = Prt$, with $P = 3000$, $r=0.03$, and $t = 3$. $I=3000\times0.03\times3$

Step4: Calculate the simple interest for question 2

$I=270$

Step5: Recall compound - interest formula for question 3

The compound - interest formula is $A=P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years. Here, $P = 800$, $r=0.04$, and $t = 3$. First, find $A$: $A=800\times(1 + 0.04)^3=800\times(1.04)^3=800\times1.124864 = 899.8912$

Step6: Calculate the compound interest for question 3

The compound interest $I=A - P$. So, $I=899.8912−800=99.8912\approx99.89$

Answer:

  1. The interest would be $$90$
  2. It would be $$270$
  3. It would be $$99.89$