SLIDES - FInancial Literacy

Lucia deposits $4,500 into a retirement account that earns 2.75% interest compounded annually. She doesn't deposit or withdraw money from the account after the initial deposit.

How much interest will Lucia earn at the end of 10 years?

Round your answer to the nearest cent.

Emma deposits $1,500 in a savings account with an annual interest rate of 8%. How much money will she have in 10 years, if the interest is compounded daily?. 

THINK-PAIR-SHARE

Li Min deposits $2,500 into each of two savings accounts.

• Account I earns 3.9% annual simple interest.

• Account II earns 3.9% interest compounded annually.

Li Min does not make any additional deposits or withdrawals.

low much more interest will Li Min earn by the end of 3 years in account II

than in account I?

SAVINGS: If $10,000 is deposited into a savings account that pays 1.8% annual interest, how much more would the account be worth if interest were compounded monthly rather than annually over a period of 30 years? Round to the nearest dollar.