Please help me with this question and EXPLAIN!
2 answers:
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Answer:
Initial principal -$300,000
Investment amount after yr 3-$390,000
Final investment amount, after 6 yrs-$519,090
Step-by-step explanation:
Let X be the amount initially invested.
#The amount after 3 yrs of simple interest is calculated as:
#The amount after 5 yrs is calculated by compounding the amount after 3 yrs for 2 yrs at 10%:
Hence, the amount initially invested as $300,000
#Amount of invested after 6 yrs is therefore:
Hence, the total amount of the investment after 6 yrs is $519,090
#Substitute X in simple interest equation to find amount after 3 yrs of simple interest:
Hence, the total amount of the investment after first 3 yrs is $390,000