Interest
Banks pay their customers this on money deposited into Savings Accounts.
Interest
The equation for the following question would look like _________. Question: $300 is deposited into an account that earns 6% simple interest. How much interest would be earned in 8 years?
I = $300*0.06*8
What do you have to remember when multiplying quarterly compounded interest?
You have to change 4 quarters to 0.25 in the equation.
What does annual mean?
Yearly
Simple and Compound
Write the correct equation and find the correct answer for the following question: Suppose you deposited $600 in an account that earns 3% simple interest. How much interest would be earned in 2 years.
I = $600*0.03*2
I = $36
To find the total amount of interest earned in all four quarters, you will use this operation of math.
Addition
True or False: With APY, you can find multiple years of interest earned.
False. You can only find how much interest a bank account will earn in ONE year.
This formula helps find how much simple interest is earned.
I = P*R*T
Write the correct equation and find the correct answer for the following question: Suppose you deposited $3,000 in an account that earns 2.5% simple interest. How much interest would be earned in 5 years.
I = $3,000*0.025*5
I = $375
The equation for the following question would look like _________. Question: You deposited $4,000 in a Savings Account that pays 4% interest compounded quarterly.
I = $4,000*0.04*0.25
Write the correct equation and find the correct answer for the following question: Suppose you deposit $2,000 in a savings account that pays 4% interest compounded quarterly. The APY for this account is 3.25%.
I = $2,000*0.0325*1
I = $65