Question

What will be the simple interest earned when you invest $1,000 for 3 years at 10 percent and the compound interest earned when you invest the same sum for 2 years at 5 percent ? The simple interest earned when you invest $1,000 for 3 years at 10 % is $ . The interest compounded when you invest the same sum for 2 years at 5 % is $ .

Answer 1

The simple interest earned when you invest $1,000 for 3 years at 10 % is $ 300 . The interest compounded when you invest the same sum for 2 years at 5 % is $ 331 .

Explanation:

#Platofam

Answer 2

simple interest = $300

compound interest =$102.5

Explanation:

Simple interest = P* T* R

P= principal, T= time, R= rate

P= $1000, T= 3, R = 0.1

simple interest = 1000 * 3 *0.1 = $300

compound interest = p[(1 + r)ⁿ - 1]

compound interest = 1000[(1 + 0.05)² - 1]

= 1000[1.1025 - 1]

= 1000 * 0.1025

= $102.5