Question

80 Quantitative Reasoning,hClass Activites Lesson 8c 2% simple interest annually when computing simple interest 2% of the nitial balance of $1,000 s added to the account every year. The amount of interest eamed is the same each year 2) Suppose you invest $1,000 in a savings account that pays Part A Complete the following table of the interest and total balance in the account based on the simple interest assumption. Total Balance (B) (initial investment+ total interest) Number of Years Interest (in dollars) nital depostI,000 5 Part B: Calculate the common difference of the Total Balance between each year. Part C: Suppose this process continued for 30 years. How much interest will have been earned? How much money would be in the account? Part D: Write an equation, and then use your equation to determine the amount in the account after 30 years Part E: What kind of model is simple interest? Why? Part F: Sketch a graph of the relationship between total balance and number of years, and then describe the shape of the graph.

Answer 1