Question

Which will earn you more money, investing 100 dollars for 50 years at 6% interest, or investing 1000 dollars for 10 years at 6% interest?

Answer 1

$1000 for 10 years at 6% interest.

Explanation:

First, converting R percent to r a decimal

r = R/100 = 6%/100 = 0.06 per year,

then, solving our equation

I = 100 × 0.06 × 50 = 300

I = $ 300.00

The simple interest accumulated

on a principal of $ 100.00

at a rate of 6% per year

for 50 years is $ 300.00.

First, converting R percent to r a decimal

r = R/100 = 6%/100 = 0.06 per year,

then, solving our equation

I = 1000 × 0.06 × 10 = 600

I = $ 600.00

The simple interest accumulated

on a principal of $ 1,000.00

at a rate of 6% per year

for 10 years is $ 600.00.

Answer 2

I think the second choice?

Explanation: