United Banks pays a 4% simple interest on its saving account. Federal Banks pays 4% interest compound

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United Banks pays a 4% simple interest on its saving account. Federal Banks pays 4% interest compound annually on it saving account.

If Ron invests $1,000 in each bank how much will he have in account after 20 Years?

2. Future Value

Sharon invests $3,000 in the stock Market today. Assume she earns 9% annual rate of return. How much money will her account be worth in twenty years? In 40 years?

3. Present Value

Eric wants to Earn $7,500 in 3 years from now to buy a new car. He can earn 6% on his saving. How much money must he deposit today to have $7,500 that he desires in three years.

4. Interest in a Single Period

One year ago, or investment was worth $369,289. Today it is worth $401,382. No deposit or withdrawal were during the year

What rate of return did the investors earn this year?

5. Interest Rates for Multiple Time Periods.

The city museum owes a rare painting currently value 1.2 million. The museum paid $240,000 to purchase the painting in 12 years.

What is the rate appreciation on his painting?

6. Number of Periods.

Tom originally started to work for Jackson Enterprises at an annual salary of $36,500. Today Tom earns $68,200. Tom calculated that his average annual pay raises has been 3.4%

How long has Tom Worked for Jackson Enterprises?