Assignment $1\mathrm{.}1$: Interest $($continued$)$

d$)$ $$100,000\mathrm{.}00$ for four years at $12\%$ compounded quarterly $(1$ mark$)$

e$)$ $$900\mathrm{.}00$ for eight years at $10\%$ compounded annually $(1$ mark$)$

Flo East has $$25,000$ to invest in a financial institution for a period of three years.

Institution A offers her an interest rate of $6\%$ compounded annually. Institution B

offers her an interest rate of $6\%$ compounded monthly. Using the compound interest

formula, determine which financial institution would pay her more interest, and by

how much. $(3$ marks$)$

Senta Cash invests $$350$ at $6\%$ compounded annually.

a$)$ Use the rule of $72$ to estimate how many years it will take her investment to

double in value. $(1$ mark$)$

b$)$ Use the compound interest formula to determine the actual value of $$350$ at $6\%$

compounded annually for the number of years indicated in part $($a$).(1$ mark$)$

c$)$ Determine the difference between the actual value of the investment and the

doubled value found with the rule of $72.(1$ mark$)$