Advanced Placement (AP), 19.01.2020 00:31 sweetiezylp8umho
Worth 75-100 points you must answer each question and show your math
tyler has $1000 that he wants to put in a savings account. he wants to save the money for 6 years. after 6 years he plans to take the money out and spend it on college. he looks at two different banks, and they offer him different interest options.
1. bank a offers tyler 4% simple interest. how much would tyler’s investment be worth after 6 years in this account? show your calculations below.
2. bank b offers tyler 3% interest compounded annually. how much would tyler’s investment be worth after 6 years in this account? show your calculations below.
3. in which bank should tyler place the $1000 he is saving for college?
tyler’s mom also has $1000 that she wants to put in a savings account. she is saving her money for retirement. she plans to retire in 30 years.
tyler’s mom must also choose between bank a and bank b.
1. bank a offers 4% simple interest. how much would tyler’s mom’s investment be worth after 30 years in this account? show your calculations below.
2. bank b offers 3% interest compounded annually. how much would tyler’s mom’s investment be worth after 30 years in this account? show your calculations below
3. in which bank should tyler’s mom place the $1000 she is saving for retirement?
4. which interest rate is better for tyler? which is better for his mother? explain the differences between the two. how can one interest rate be more advantageous to tyler while a different one is more advantageous to his mother?
Answers: 1
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Worth 75-100 points you must answer each question and show your math
tyler has $1000 that he w...
tyler has $1000 that he w...
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