Beatrice invests $1,430 in an account that pays 5 percent simple interest. How much more could she have earned over a 6-year per
1 answer:
Beatrice would have earned $57.33 over a 6-year period if the interest had been compounded annually.
<h3><u>What is interest?</u></h3>- The fee paid for the privilege of borrowing money is called interest, and it is often stated as an annual percentage rate (APR).
- The compensation a lender or financial organisation receives for giving out money is called interest.
- The percentage of a stockholder's ownership in a corporation that is also referred to as interest.
- Simple and compound interest rates are the two basic types that can be used with loans.
- Simple interest is a predetermined percentage of the principal that was initially lent to the borrower that the borrower must pay in exchange for access to the funds.
Interest that is paid on a loan that includes both principal and compounding interest is known as compound interest. The second kind of interest is less typical than the first.
Now, calculating compound interest:
1430 (.05 × 6) + 1430 = 1859
1430 × = 1,916.33
1916.33 - 1859 = 57.33
Know more about interest with the help of the given link:
#SPJ4
You might be interested in