A bank account starts with $100 and earns 4% interest annually. How much money will be in the account after 12 years assuming no transactions have occurred. Round to the nearest cent.

Jim received a $2000 loan from his bank. The loan accrues 3% interest every 3 months. How much will Jim owe the bank after 4 years? Round to the nearest cent?

A] The future amount of an invested is given by:

A=P (1+r/100) ^t

where:

A=amount

P=principle

r=rate

t=time

thus the amount after 12 years will be:

A=100 (1+4/100) ^12

A=$160.10

b] The amount that Jim will owe the bank after 4 years will be given by;

A=p (1+r/200n) ^nt

A=amount

p=principle=2000

r=rate=4*3=12% p. a

t=time=4 years

n=number of terms=4

thus:

A=2000 (1+0.03) ^16

A=$3209.41

Jim will owe the bank $3209.4 after 4 years