Question

You deposited $10.00 in your bank at 8% for a period of 6 years. What will be your total amount at the bank according to: a) simple interest, b) compound interest?

Answer 1

Simple=$14.80 Compound=$16.14

Explanation:

Simple=A=P(1+rt)

10.00(1+0.08×6)

Compound-A=P(1+r/n)^nt

10.00(1+0.08/6)^12*6