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# Interest Calculations

Lyle O'Keefe invests \$37,400 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Lyle withdrew the accumulated amount of money.

(a) Compute the amount Lyle would withdraw assuming the investment earns simple interest. (Round answers to 0 decimal places, e.g. \$458,581.)

Total withdrawn
\$

(b) Compute the amount Lyle would withdraw assuming the investment earns interest compounded annually. (Round answers to 0 decimal places, e.g. \$458,581.)

Total withdrawn
\$

(c) Compute the amount Lyle would withdraw assuming the investment earns interest compounded semiannually. (Round answers to 0 decimal places, e.g. \$458,581.)

Total withdrawn
\$

#### Solution Preview

Hi there,

Thanks for letting me work on your post. Here is my explanation:

a. Compute the amount Lyle would withdraw assuming the investment earns simple interest. (Round ...

#### Solution Summary

The following posting helps with computing interest calculations. Step by step calculations are provided for each.

\$2.19