f $24,000 is invested in an account for 30 years. Calculate the total interest earned at the end of 30 years if the interest is: (a) 7% simple interest: $ (b) 7% compounded annually: $ (c) 7% compounded quarterly: $ (d) 7% compounded monthly: $

Step-by-step explanation:

So, you need to know the formula for simple and compound interest. If you want an in depth explanation let me know, but for a quick one, the simple interest formula is P+Prt where P is the starting amount, r is the rate and t is the amount of times it is compounded. In this instance it always uses the amount you originally put in to find interest. Another way of writing it is P (1+rt)

Compound interest is a little more complicated. The formula is P (1 + (r/n)) ^ (nt) where r is the rate again, n is the number of times per year it is compounded and t is the number of years. Again, if you want a more in depth explanation let me know. Anyway we can now answer the question.

a) Simple interest is simple 24,000 (1+.07*30) = $74,000

b) Compounded means we have to look for all the parts. r is. 07 t is 30 and n is 1 24,000 (1 + (.07/1)) ^ (1*30) = $182,694.12

c) r =.07 n = 4 t = 30 so 24,000 (1 + (.07/4)) ^ (4*30) = 192,460.40

d) r =.07 n = 12 t = 30 so 24,000 (1 + (.07/12)) ^ (12*30) = 194,795.94