Answer:
Step-by-step explanation:
Given that a bank representative studies compound interest, so she can better serve customers. She analyzes what happens when $2,000 earns interest several different ways at a rate of 2% for 3 years.
a) the interest if it is computed using simple interest. 12.00
=[tex]\frac{2000(3)(12)}{100} \\=720[/tex] dollars
b) the interest if it is compounded annually.
=[tex]2000(1.12)^3-2000\\= 809.86[/tex] dollars
c) the interest if it is compounded semiannually
=[tex]2000(1.06)^6 -2000\\= 837.04[/tex]
d) the interest if it is compounded quarterly.
=[tex]2000(1.03)^12 -2000\\= 851.52[/tex]
e) the interest if it is compounded monthly.
=[tex]2000(1.01)^24 -2000\\= 861.54[/tex]
