Little john has inherited $100,000 for his relatives estate. He will invest the money for 2 years. His is considering two investments: a money market fund that pays a guaranteed 5.8% interest compounded daily and a 2-year Treasury note at 6% simple interest. How much interest does each option return? Which investment pays the most interest over the 2-year period?
At the end of every 3 months, Marylan deposits $100 into an account that pays 4% compounded quarterly. After 2 years, she puts the accumulated amount into a certificate of deposit paying 7.5% compounded monthly for 1 year. When this certificate matures, how much will Marylan have accumulated? How much interest was earned overall?