1. Alana Geltner deposited $2,225 in a savings account that pays 5.5% interest compounded daily. How much interest did she earn after 21 days?
2. Dell Mortzburg deposits $1,000 in an ordinary annuity at the end of each month in an account that earns 3% interest compounded monthly. What is the future value of the annuity in 12 years? How much interest will Dell have earned in the 12 years?
3. Oscar Montez’s savings account has a principal of $7,201. It earns 6% interest compounded quarterly. What is the amount in the account at the end of the second quarter?
1. Alana will have in her account:$2,232.05 after 21 days. So, the interest she earns is:$2,232.05 - $2,225.00=$7.05
2.Dell will have a total of: $173,074.25 after 12 years. Dell will have earned:$173,074.25 - [$1,000 X 144]=$29,074.25 in interest.
3.Oscar's account will have a total of:$7,418.65 after 2 quarters.
