1. Tom decides to save money to buy his dream car. He deposits $8,000 into a savings account with an annual interest rate of 6%. Calculate the simple interest after 3 years.*4 points$1,140$1,240$1,340$1,4402. Emily starts saving for her college education by depositing $12,000 into an education fund with an annual interest rate of 5%. Calculate the simple interest after 4 years.*4 points$1,400$2,400$3,400$4,4003. Mark is saving for a home renovation project. He deposits $15,000 into a savings account with an annual interest rate of 8%. Calculate the total amount after 2.5 years.*4 points$12,000$14,000$16,000$18,0004. Alex invests $25,000 in a small business with an annual interest rate of 9%. Calculate the simple interest after 2 years.*4 points$1,500$2,500$3,500$4,5005. A group of friends (5 members) decides to start a vacation savings club. Each friend contributes $500 to the club every year, and the total amount is deposited into a savings account with an annual interest rate of 4%. Calculate the total amount in the savings account after 5 years.*4 points$1,000$2,000$3,000$4,000

To calculate the simple interest after 3 years for Tom's savings account, we can use the formula: Simple Interest = Principal * Rate * Time.

• Principal (P) = $8,000
• Rate (R) = 6% or 0.06 (converted to decimal)
• Time (T) = 3 years

Plugging in the values, we get: Simple Interest = $8,000 * 0.06 * 3 =$1,440.

Therefore, the simple interest after 3 years is $1,440.

To calculate the simple interest after 4 years for Emily's education fund, we can use the same formula: Simple Interest = Principal * Rate * Time.

• Principal (P) = $12,000
• Rate (R) = 5% or 0.05 (converted to decimal)
• Time (T) = 4 years

Plugging in the values, we get: Simple Interest = $12,000 * 0.05 * 4 =$2,400.

Therefore, the simple interest after 4 years is $2,400.

To calculate the total amount after 2.5 years for Mark's savings account, we need to consider both the initial deposit and the interest earned. The formula for calculating the total amount is: Total Amount = Principal + Simple Interest.

• Principal (P) = $15,000
• Rate (R) = 8% or 0.08 (converted to decimal)
• Time (T) = 2.5 years

Plugging in the values, we get: Simple Interest = $15,000 * 0.08 * 2.5 =$3,000. Total Amount = $15,000 +$3,000 = $18,000.

Therefore, the total amount after 2.5 years is $18,000.

To calculate the simple interest after 2 years for Alex's investment, we can use the same formula: Simple Interest = Principal * Rate * Time.

• Principal (P) = $25,000
• Rate (R) = 9% or 0.09 (converted to decimal)
• Time (T) = 2 years

Plugging in the values, we get: Simple Interest = $25,000 * 0.09 * 2 =$4,500.

Therefore, the simple interest after 2 years is $4,500.

To calculate the total amount in the vacation savings club after 5 years, we need to consider the annual contributions from each friend and the interest earned. The formula for calculating the total amount is: Total Amount = (Annual Contribution * Number of Friends) + Simple Interest.

• Annual Contribution = $500
• Number of Friends = 5
• Rate (R) = 4% or 0.04 (converted to decimal)
• Time (T) = 5 years

Plugging in the values, we get: Simple Interest = ($500 * 5) * 0.04 * 5 =$500. Total Amount = ($500 * 5) +$500 = $2,500 +$500 = $3,000.

Therefore, the total amount in the savings account after 5 years is $3,000.