If you invested $600 at 3% simple interest for 2 years, how much interest do you earn? Show work and answer in complete sentences to earn fu

Question

If you invested $600 at 3% simple interest for 2 years, how much interest do you earn? Show work and answer in complete sentences to earn full credit. If you invest $600 at 4% compounded monthly for 2 years, how much interest you do earn? Show work and answer in complete sentences to earn full credit. Which would you rather do?

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Caroline 1 week 2021-09-14T19:43:09+00:00 1 Answer 0

Answers ( )

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    2021-09-14T19:44:28+00:00

    Answer:

    I would rather do the second option of which uses Compound interest that will give a profit of $47.85

    Step-by-step explanation:

    In this problem we will be exploring the two formulas

    1. simple interest

    A= P(1+r*t)

    2. compound interest

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

    Where A= final amount

    P= initial amount

    r= rate

    t= time.

    n= number of periods Compounded

    1.given data

    P= $600

    r= 3%= 3/100= 0.03

    t= 2 years

    A= 600(1+0.03*2)

    A= 600(1+0.06)

    A= 600(1.06)

    A= $636

    Interest = 636-600= $36

    2. Given data

    P= $600

    r= 4%= 4/100= 0.04

    n= 24

    t= 2

    A= 600(1+0.04/24)^24*2

    A=600(1+0.0016)^48

    A=600(1.0016)^48

    A= 600*1.07975

    A= 647.85

    Interest = 647.85-600= $47.85

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45:7+7-4:2-5:5*4+35:2 =? ( )