Ans 1) $ 17600.00
SIMPLE INTEREST | |
FV = | PV + PV * Rate * Time |
FV = | 8000 + 8000 * 12% * 10 |
FV = | 17600.00 |
Ans 2) $ 25657.08
FV = | Future Value |
PV = | Present Value |
r = | rate of interest |
n= | no of period |
Compound Interest | |
FV = | PV (1 + r )n |
FV = | 8000*(1+12%/2)^20 |
FV = | 25657.08 |
Practice Problems 1. You invest $8,000 in a savings account, the interest rates a savings account,...
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