Step-by-step explanation:
To solve these problems we will use these formulas
Compound interest is formula
A = P(1 +r)^t
A = final amount
P = initial principal balance
r = interest rate
t = number of time periods elapsed
The Simple interest formula is
A = P (1 + rt)
1. Compound interest
Principal p= $4000
Time t = 7years
Rate r= 2%= 2/100= 0.02
A= 4000(1+0.02)^7
A=4000(1.02)^7
A= 4000*1.1486
A=4594.74
the answer is
A. $4594.74
2. Simple interest
P= $10000
Rate r= 3.5%=3.5/100= 0.035
Time t= 7 years
A= 10000(1+0.035*7)
A= 10000(1+0.245)
A= 10000(1.245)
A= $12450
the answer is
B. $12450
3 compound interest
Given
Principal = $6000
Rate r= 6%= 6/100= 0.06
Time t =5 years
A= 6000(1+0.06)^5
A= 6000(1.06)^5
The answer is
A. 6000(1.06)^5
4. Simple interest
Principal p = $25000
Rate r= 2.75%= 2.75/100= 0.025
Time t= 1 year
A= 25000(1+0.025*1)
A= 25000(1.025)
A=$25625
She will earn interest of
25000-25625=$625 yearly
The answer is
B. $625
