Question9
Multiple Choice
6 points
Assume is deposited into a savings account. Boulder Bank offers an annual rate of for 5 years. Stone Bank offers a rate of interest for 1 year. Which earns more interest?
Boulder Bank
Stone Bank
10
Fill in the Blank
6 points
A couple is planning a savings account for a newborn baby. They start with they received as cash gifts. If no deposits or withdrawals are made, what is the balance of the account if it earns interest for 18 years?
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11
Fill in the Blank
6 points
Ron estimates it will cost him to send his daughter to a private college in 18 years. He currently has to deposit in an account. What simple interest rate must his account have to reach a balance of in 18 years? Round to the nearest percent.
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Studdy Solution
Convert to a percentage and round to the nearest percent.
The answers are:
1. Boulder Bank earns more interest: .
2. The balance of the newborn's savings account: .
3. Required interest rate for Ron's savings: .
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