In problems 1 - 4, find the simple interest and the accumulated balance in each case.

1. A principal of $3000, APR is 8 % for 4 years.

1. A principal of $6000, APR of 12% for 4 months.

In problems 5 - 9, find the final accumulated amount and the total interest earned.

1. A principal of $100 at 6% for 8 years compounded annually.

1. A principal of $12,000 at 10% compounded semiannually for 8 years.

1. A principal of $20,000 at 8% compounded quarterly for 3 years.

1. A principal of $10,000 at 7% compounded monthly for 8 years.

1. A principal of $10,000 at 7% compounded daily for 8 years.

1. Mike wants to have $3176.60 in his account in 5 years. How much should he deposit now if the APR is 4.8%, compounded monthly?

1. Sean plans to invest $10,000 in a savings account that pays 6% compounded quarterly. His friend suggests that he invest in an account paying the same interest rate that pays interest compounded monthly. How much more interest will he earn at the end of 10 years if he follows his friend's advice?

a)How much interest will he earn by compounding quarterly?

b)How much interest will he earn by compounding monthly?

c)How much interest is he gaining by following his friend's advice?

1. Explain the difference between simple interest and compound interest. Which of the two is better for you when;
2. You save some money in the bank?
3. When you take a loan from the bank?