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FMath 12 – Compound Interest is Simple Name: _________________________ Show all your work as well as your final answer for each questions. 1. $1200 is invested at 3.35% for 10 years. Calculate the final value, FV, and the total interest, I, earned in each investment scenario: (a) Simple interest FV = __________ I = ___________ (b) Compounded Daily FV = __________ I = ___________ (c) Compounded Monthly FV = __________ I = ___________ 2. Using the Rule of 72, estimate the doubling time for a $5000 investment compounded weekly at 5.0%. Then, calculate the doubling time to the nearest month. Estimate = ______ Calc = __________ 3. How many years would it take a $1500 investment to grow to $10 000 compounded daily at 5%? _______ yrs 4. An investment grows compounded annually to: $1404.16 after 1 year, $1460.16 after 2 years and $1518.57 after 3 years. (a) Calculate the annual interest rate used. _______ % (b) Calculate the original initial principal of the investment. $___________