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A person invests 1800 in an account that earns 2.46% annual interest. Find the value of the investment after 25 years.​

1 Answer

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Answer:

Simple Interest : $2907 (total value of account)

Compound Interest : $3304.69 (total value of account)

Explanation:

Simple Interest = Principal * (1 + rate * time)

SI = 1800 * (1 + 0.0246 *25)

SI = $2907

Compound Interest = Principal (1 + rate/times applied over period)^ times applied over period*timer

CI = 1800 (1 + 0.0246/1)^25/1)

CI = $3304.69

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