Simple interest can be calculated using the following formula
Where, P = principal
R = interest rate
T = time period
Case 1. P = KD 5,000
Rate, r = 12.25% per year = 0.1225
Time, t = 3 years
Case 2. P = KD 5000
Rate, r = 0.115
Time, t = 3
Interest = KD 5,000*0.115*3 = KD 1,725
Select first alternative with interest = KD 1,837.50
Option B First alternative with interest KD 1,837.50
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engineering economics You investment options. The first option is a bond with a maturity date three...
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