1. Find the simple interest earned on a deposit of $5,750 that is left on deposit for 3.5 years and earns an
the annual interest rate of 4.5%.
2. Three years after investing $15,000, a retired couple received a check for $3,375 in simple interest. Find
the annual interest rate their money earned during that time.
3. For their newborn child, parents deposit $10,000 in a college account that pays 8% interest,
compounded annually. How much will be in the account on the child’s 17th birthday?
4. If the parents in part c invested $10,000 in an account paying 8%, compounded quarterly, how much
more money would they have after 17 years?
5. What sum must be deposited today at 18% per year compounded monthly if the goal is to a compound
amount of $50, 000 six years from today? How much interest will be earned during this period?
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