FINANCE Luke could invest $1000 at simple interest rate of 11% p.a. for 4 years or at 10% p.a. compound interest for the same period of time. Which is the better investment and …

Question

asked Sep 8, 2021 173k views

1 Answer

Arikan · Answer 1 · 2021-09-13T09:56:28+0000

Answer:

Explanation:

Simple interest rate = 1000(1+11x4) = 4500

= 4500-1000=3500

Comppound interest rate = 100%+10%=110%/100%=1.1%

1000X(1.1)^4=1464.10