Question: Pease help with second and third question. First question is solved. Thank you, 1. Simple versus compound interest Aa Aa Financial contracts involving investments, mortgages,
Pease help with second and third question. First question is solved.
Thank you,
1. Simple versus compound interest Aa Aa Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Olivia deposited $1,700 in a savings account at her bank. Her $232.60 account will earn an annual simple interest rate of 7.8%. If she $1,842.94 makes no additional deposits or withdrawals, how much money O $3,883.79 will she have in her account in 11 years? $3,158.60 Now, assume that Olivia's savings institution modifies the terms $3,158.60 of her account and agrees to pay 7.8% in compound interest on O $302.94 her $1,700 balance.All other things being equal, how much $3,883.79 O $1,832.60 money will Olivia have in her account in 11 years? Suppose Olivia had deposited another $1,700 into a savings account at a second bank at the same time. The second bank also pays a nominal (or stated) interest rate of 7.8% but with quarterly compounding. Keeping everything else constant, how much money will Olivia have in her account at this bank in 11 years? O $1,836.53 O $334.34 $3,976.37 O $232.60
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