If $17,000 is invested in an account for 25 years. Calculate the total interest earned at the end of 25 years if the interest is
: (a) 7% simple interest: $ (b) 7% compounded annually: $ (c) 7% compounded quarterly: $ (d) 7% compounded monthly: $
1 answer:
Answer:
a.) $29,750.00 simple interest
b.) $75,266.35 Compounded annually
c.) $79,358.65 compunded quarterly
d.) $80,332.11 compounded monthly
Step-by-step explanation:
a.) Formula: I = p x r x t
Where:
P is the principal amount, $17000.00.
r is the interest rate, 7% per year, or in decimal form, 7/100=0.07.
t is the time involved, 25....year(s) time periods.
So, t is 25....year time periods.
To find the simple interest, we multiply 17000 × 0.07 × 25 to get that:
The interest is: $29750.00
______________________________
b.) $75,266.35
c.) $79,358.65
d.) $80,332.11
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