Katherine invests \$7,770 in a six-month money market account giving 5.8% simple annual interest and \$12,500 in a three-year CD giving 7.25% simple annual interest. Assuming that Katherine does not reinvest or renew these investments, how much money will she have when both investments reach maturity, to the nearest dollar? a. \$2,944 b. \$15,219 c. \$23,214 d. \$30,886
Simple interest = Principal × Time × rate Le's work out the interest Katherine earns from the two investments. Money Market Account Simple interest = 7770 × 5.8/100 × 6/12 = 7770 × 0.058 × 0.5 = \$225.33 So, the amount she gets at maturity is: \$7770 + \$225.33= \$7995.33 CD account Simple interest = 12500 × 0.0725 × 3 = \$2718.75 The amount she receives at the end of period is: \$12500 + \$2718.75 = \$15218.75 The total amount she receives from both investments at maturity is: \$15218.75 + \$7995.33 = \$23214.08 This to the nearest dollar is: = \$23214
f
Question
Updated 12/17/2022 1:35:09 PM
Rating
3
Simple interest = Principal × Time × rate
Le's work out the interest Katherine earns from the two investments.
Money Market Account
Simple interest = 7770 × 5.8/100 × 6/12
= 7770 × 0.058 × 0.5 = \$225.33
So, the amount she gets at maturity is:
\$7770 + \$225.33= \$7995.33
CD account
Simple interest = 12500 × 0.0725 × 3 = \$2718.75
The amount she receives at the end of period is:
\$12500 + \$2718.75 = \$15218.75
The total amount she receives from both investments at maturity is:
\$15218.75 + \$7995.33 = \$23214.08
This to the nearest dollar is:
= \$23214

Questions asked by the same visitor
Assuming this record is complete, what is Kurt’s ending balance? a. \$369.61 b. \$359.53 c. \$293.11 d. \$274.59
Question
Updated 291 days ago|7/8/2023 8:39:47 PM
Kurt’s ending balance on April 30 was \$331.36. Add or subtract the items in his check register, shown below, to find his balance on May 30. Date Type Description Amount 05/01 Check #478 Car payment \$186.47 05/05 Debit Groceries \$66.42 05/08 Deposit Paycheck \$279.62 05/15 Deposit Tax return \$95.02 05/29 Check #479 Insurance \$160.00 Assuming this record is complete, Kurt’s ending balance is \$293.11.

Let x is Kurt's ending Balance:
x = (\$331.36 + \$279.62 + \$95.02) - (\$186.47 + \$66.42 + \$160.00)
x = \$706 - \$412.89
Added 291 days ago|7/8/2023 8:39:47 PM
If you wish to calculate the interest on an investment with a rate of 6.17%, what number will you plug into your equation? a. 0.00617 b. 0.0617 c. 0.617 d. 6.17 User: Abigail has an account that pays 6.92% simple interest per year and wants to accumulate \$5,896 in interest from this account over six years. How much money should Abigail invest in this account to meet this goal? a. \$2,448.02 b. \$8,344.10 c. \$14,200.39 d. \$20,096.67
Weegy: Formula: Principal = (100 x 5896)/(6.92 x 6); = 14200.385; Abigail needs to invest \$14200.39 to meet her goal of \$5896. User: Which of the following investments will earn the smallest amount of interest? a. \$8,030, invested for 2 years at 2.0% interest b. \$1,901, invested for 8 years at 4.0% interest c. \$5,330, invested for 6 years at 2.0% interest d. \$3,970, invested for 6 years at 4.0% interest Weegy: The correct answer is B. \$1,901 invested for 8 years at 4.0% interest. User: Arthur has \$19,500 to invest, and wishes to gain \$8,000 in interest over eleven years. Approximately what is the minimum simple interest rate that Arthur needs to achieve his goal? a. 2.64% b. 3.04% c. 3.72% d. 4.51% (More)
Question
Updated 9/12/2022 5:24:34 PM
Arthur has \$19,500 to invest, and wishes to gain \$8,000 in interest over eleven years. Approximately what is the minimum simple interest rate that Arthur needs to achieve his goal?
R=I÷ptR=8,000÷(19,500×11)=0.0372×100=3.72%
t Object]User: Irene invested \$27,000 in a twelve-year CD bearing 8.0% interest, but needed to withdraw \$6,000 after three years. If the CD’s penalty for early withdrawal was eighteen months’ worth of interest on the amount withdrawn, when the CD reached maturity, how much less money did Irene earn total than if she had not made her early withdrawal? a. \$3,600 b. \$4,320 c. \$720 d. \$5,040
Question
Updated 1/7/2023 7:59:55 PM
Irene invested \$27,000 in a twelve-year CD bearing 8.0% interest, but needed to withdraw \$6,000 after three years. If the CD's penalty for early withdrawal was eighteen months' worth of interest on the amount withdrawn, when the CD reached maturity, \$5,040 did Irene earn total than if she had not made her early withdrawal.
t Object]User: Lloyd has \$20,000 to deposit. His wife’s illness leads to medical expenses beyond what their insurance will cover, so Lloyd must often quickly access his savings. Recommend a good way for Lloyd to store his money. a. A two-year CD giving 9.1% interest annually b. An online savings account giving 3.6% interest c. A series of six-month money market accounts paying 4.6% interest d. A checking account with free checks
Question
Updated 3/17/2021 7:28:12 AM
Lloyd has \$20,000 to deposit. His wife’s illness leads to medical expenses beyond what their insurance will cover, so Lloyd must often quickly access his savings. Recommend a good way for Lloyd to store his money. An online savings account giving 3.6% interest.
t Object]User: Anna’s bank gives her a loan with a stated interest rate of 10.22%. How much greater will Anna’s effective interest rate be if the interest is compounded daily, rather than compounded monthly?
Question
Updated 306 days ago|6/23/2023 8:43:33 PM
To determine the difference in Anna's effective interest rate when compounded daily compared to compounded monthly, we need to consider the compounding period and calculate the effective interest rate using both scenarios.

Assuming the stated interest rate is an annual rate, we can convert it to a decimal by dividing it by 100:

10.22% = 0.1022

Compounded Monthly:
To calculate the effective interest rate compounded monthly, we divide the annual interest rate by 12 (number of months):
Monthly interest rate = 0.1022 / 12 = 0.0085167

Next, we calculate the effective interest rate using the monthly interest rate over one year:

Effective interest rate compounded monthly = (1 + 0.0085167)^12 - 1

Compounded Daily:
To calculate the effective interest rate compounded daily, we divide the annual interest rate by 365 (number of days in a year):
Daily interest rate = 0.1022 / 365 = 0.00028055

Next, we calculate the effective interest rate using the daily interest rate over one year:

Effective interest rate compounded daily = (1 + 0.00028055)^365 - 1

By comparing the two effective interest rates, we can determine the difference in Anna's effective interest rate when compounded daily instead of compounded monthly.
Added 306 days ago|6/23/2023 8:43:33 PM
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