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Interest Calculations

Please help with the following problems.

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Total withdrawn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Total withdrawn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Total withdrawn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