Question

Create 3 situations that illustrate simple and compound interest

Answer 1

Answer:

This is your answer

Step-by-step explanation:

1) A friend asks to borrow $300 and agrees to repay it in 30 days with 3% interest. How much interest will you earn?

Solution - 1st question answer is in the above image

2) Treasury Notes (T-notes) are bonds issued by the federal government to cover its expenses. Suppose you obtain a $1,000 T-note with a 4% annual rate, paid semi annually, with a maturity in 4 years. How much interest will you earn?

Solution - 2nd question answer is in the above image

3) Build an explicit equation for the growth of $1000 deposited in a bank account offering 3% interest, compounded monthly.

Solution - 3rd question answer is in the above image