Over time, compound interest at any rate will outperform simple interest. When the rates are nearly equal to start with, compound interest will be greater in very short order. Here, it takes less than 1 year for compound interest to give a larger account balance.

In 30 years, the simple interest will be

... I = P·r·t = 12,000·0.07·30 = 25,200

In 30 years, the compound interest will be

... I = P·(e^(rt) -1) = 12,000·(e^(.068·30) -1) ≈ 80,287.31

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6.8% compounded continuously results in more total interest

4 0

2 years ago

Part A: Abe rented a bike at $36 for 5 days. If he rents the same bike for 8 days, he has to pay a total rent of $48. Write an e

worty [1.4K]

y=4 x +(1.6 X 10)

y=4x +16

x=0 y=0+16 (0,16)

x=1 y=4 +16 (1,20) first day it cost $20

x=2 y=8+16 (2,24) second day it cost $24

x=3 y=12+16 (3, 28) third day it cost $28

plot (0,16) , (1,20), (2,24), (3, 28)

i hope this help

7 0

3 years ago