Banking Services

Dillon has a bank account that pays 3.2% simple interest. His balance is $1,766. How long will it take for the amount in the account to grow to $2,000? Round to the nearest year.

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How much simple interest would $1,000 earn in 275 days at an interest rate of 4.21%? (There are 365 days in a year.)

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What simple interest rate, to the nearest tenth, is needed for $15,000 to double in 8 years?

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How much interest would $2,000 earn, compounded annually, in two years at the rate of 4.2%?

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Mr. Guny deposits $4,900 in a savings account that pays 3¹/₂% interest compounded quarterly. Find the first quarter’s interest.

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Danielle has a CD at Crossland Bank. She invests $22,350 for four years at 4.55% interest, compounded monthly. What is her ending balance? How much interest did she make?

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Ms. Santoro is opening a one-year CD for $16,000. The interest is compounded daily. She is told by the bank representative that the annual percentage rate (APR) is 4.8%. What is the annual percentage yield (APY) for this account?

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Compare the simple interest for one year on a principal of 1 million dollars at an interest rate of 6.3% to compounding every second for the same principal and interest rate. How much interest does $1,000,000 earn in one year at 6.3% interest, compounded every second? How much does the same $1,000,000 earn at 6.3% in one year, under simple interest? How much more interest did the compounded account earn when compared to the

simple-interest account?

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Britney invested $4,000 in a CD at TTYL Bank that pays 3.4% interest compounded monthly. What is the APY for this account? Round to the nearest hundredth of a percent.

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If you deposit $10,000 at 3.85% interest, compounded continuously, what would your ending balance be after three years?

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