Find a the compound amount and b the compound interest for t

Find (a) the compound amount and (b) the compound interest for the given investment and rate:

1. $2000 for 5 years at an effective rate of 2%.

(a) The compound amount is $ .

(b) The compound interest amount is $ .

2. $350 for 12 months at an effective rate of 3%.

(a) The compound amount is $ .

(b) The compound interest amount is $ .

3. $10000 for 8 months at an effective rate of 5%.

(a) The compound amount is $ .

(b) The compound interest amount is $

The effective rate means it is the equivalent value of the rate of simple interest per annum as per the rate of compount interest.

1. Now, 5 years at an effective rate of 2% means 5*2=10%. Hence interest generated would be 10% of $2000 i.e. $200.

a) So, compound amount would be $2000+$200=$2200

b) Compound interest amount would be $200.

2.12 months at an effective rate of 3% is equivalent to 3% for 1 year. So,the interest generated would be 3% of $350 = $10.5.

a) So, compound amount would be $350+$10.5=$360.5

b) Compound interest amount would be $10.5.

3.8 months at an effective rate of 5% is equivalent to 2/3rd year at 5% = 10/3%. So,the interest generated would be 10/3% of $10000 = $333.33.

a) So, compound amount would be $10000+$333.33=$10333.33

b) Compound interest amount would be $333.33.