Answer:
Step-by-step explanation:
Compounding interest :
Future value of money = Present value * (1+ r)^N
r - interest rate
n - number of period
In our example, Present value = 325.76, FV = 400, r = 2%, and we need to find N
by solving that we can find it that N is equal to 10.3675
Simple interest :
400 - 325.76 = 74.26$ we need to increase
325.76*2% = 6.5152$ each year
74.26 / 6.5152 = 11.3949
as a whole year = 12years
