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MMM Free Response with answers

# MMM Free Response with answers - 1 AKS Compute simple and...

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1) AKS: Compute simple and compound interest. When the Davis twins were born, their Grandparents invested \$10,000 each for their college education. Grandma invested the \$10,000 for the first born twin at 6% compounded daily. Grandpa invested the \$10,000 for the second born twin at 7% compounded annually. On their 18th birthday, which twin, the first born or second born, had more money available from the investments for college? Formula for Compound Interest A=P(1 + n r ) nt ANSWER: The second born had more money available from the investments for college. Using the formula and doing the computation, the first born had the interest rate of 6% compounded daily and his investment was worth \$29,444.18 on his 18th birthday. The second born had the interest rate of 7% compounded annually and his investment was worth \$33,799.32. 2) AKS: Describe process of opening a checking and/or savings account, making deposits, and withdrawals. Use information below to fill in and balance the check register. ( You will need the check register spreadsheet) 1. Beginning balance \$256.89 2. Deposit \$347.98 3. Check #100 \$45.68 to AT&T 4. Check #101 \$12.58 to Atlanta Gas 5. Check #102 \$249.34

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