1. At the time of her grandson's birth, a grandmother deposited $ 13,000 in an account. The account was paying 3.0% interest compounded monthly.
a. If the rate did not? change, what was the value of the account after 14 years ?
b. If the money had been invested at 3.0% compounded quarterly, what would the value of the account have been after 14 years?
a. The value of the account will be $ nothing.
(Round to the nearest cent.)
2. You are given a choice of taking the simple interest on $100,000 invested for 2 years at a rate of 5% or the interest on 100,000 invested for 2 years at an interest rate 5% compound monthly.
Which investment earns the greater amount of interest? Give the difference between the amounts of interest earned by the two investments.
The investment with is it COMPOUND OR SIMPLE interest earns $? MORE INTEREST
compound
simple
interest earns
$nothing
more in interest.
(Round to the nearest cent as needed.)