Question

help with q 2 and 3 please

Student ID I Passport No. Full Name sirst City Bank pays 7 percent simple interest on its savings account balances, whereas Paper A Second City Bank pays 8 percent interest compounded annually. If you made an $8,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 10 years? (10%) 1. a You're trying to save to buy a new $160,000 Ferrari. You have $25,000 today that can be invested at your bank. The bank pays 3.2 percent annual interest on its accounts. How long will it be before you have enough to buy the car? In 1895, the first U.S. Open Golf Championship was held. The winner's prize money was $150. In 2009, the winner's check was $1, 350.000. What was the annual percentage increase 3. in winner's check over this period? If the winner's prize increases at the same rate, what will it be in 2045? Full image (4M)

Answer 1

As asked, Q2 is answered below

Kindly ask Q3 is another post, as HomeworkLib allows answering just one question in a single post

2.

Assuming that compound interest applies here,

A = P(1+r)ⁿ

Substitute given values,

160,000 = 25,000(1+0.032)ⁿ

6.4 = 1.032ⁿ

Log 6.4 = n . log 1.032

0.806 = n. 0.0136

n = 0.806/0.0136

n = 59

Thus, it will take the man approximately 59 years to accumulate the desired money to buy the car.