3. a) i) For the first two years,
P=$25000
R=0.3%
T=2 years
I=(PxRxT)/100
=(25000x0.3x2)/100
=$150
For the remaining three years,
P=$25000
R=0.5%
T=3 years
I=(PxRxT)/100
=(25000x0.5x3)/100
=$375
Amount of interest he receives for 5 years=375+150=$550
ii) P=$25000
R=0.4%
T=3/12=1/4=0.25 year(The time,t is measured in years)
I=(PxRxT)/100
=(25000x0.4x0.25)/100
=$50
In 5 years, there are 5x12=60 months
For every 3 months, he receives $50
For 60 months, he receives (50/3)x60=$1000
b) Mark should choose to invest in UOO bank as he receives 1000-550=$450 more in the form of interest.
For number 4, please check this photo:
