1. Lydia's aunt Rose left her $5,000. Lydia spent $1,000 on her wardrobe and deposited the rest in an account that pays 6.9% compounded monthly. How much money will she have in 5 years?a.
Lydia will have $4,000 x (1.00575)5 = $4,116.33b.
Lydia will have $4,000 x (1.00575)-60 = $5,642.38c.
Lydia will have $4,000 x (1.00575)60 = $5,642.38d.
Lydia will have $4,000 x (1.069)5 = $5,584.04
2.If an amount of $2,000 is borrowed at a simple interest rate of 10% for 3 years, how much is the Interest per year?
The interest is $2,000 x .103 x 1 = $206
The interest is $2,000 x .10 x 1 = $200
The interest is $2,000 x .03 x 10 = $600
The interest is $2,000 x .10 x 3 = $600
QUESTION 3
Jessica takes a loan of $800 for 4 months at 12% simple interest on an annual basis. How much does she owe at the end of the 4-month period?a.
Jessica owes 800 x .12 x (1/3) = $832b.
Jessica owes 800 x .12 x (3/4) = $288c.
Jessica owes 800 x .12 x (1/4) = $24.00d.
Jessica owes 800 x .12 x (3) = $288