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What total amount of money would you have if you invested $5,000 at 2% interest for 3 years and the interest was calculated using the simple interest method? Use the simple interest example above as a
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What total amount of money would you have if you invested $5,000 at 2% interest for 3 years and the interest was calculated using the simple interest method? Use the simple interest example above as a guide to calculate simple interest, please show your work.

User Adam Barth
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2 Answers

15 votes
15 votes

Answer:7,445.50

Step-by-step explanation:

User Ytsejammer
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3.2k points
15 votes
15 votes

Answer:

simple Interest: $5,300.00

Annually Compounded Interest: 5,306.04

Explanation: Compound Interest means that you earn "interest on your interest", while Simple Interest means that you don't - your interest payments stay constant, at a fixed percentage of the original principal.

User Joel Berger
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