Answer:
<h3><em>which is a better investment and by how much</em></h3>
<em><u>It's</u></em><em><u> 14% p.a simple interest</u></em>
Step-by-step explanation:
<em><u>Simple interst:</u></em>
Answer:
I = $ 649.60
Equation:
I = Prt
Calculation:
First, converting R percent to r a decimal
r = R/100 = 14%/100 = 0.14 per year,
then, solving our equation
I = 2320 × 0.14 × 2 = 649.6
I = $ 649.60
The simple interest accumulated
on a principal of $ 2,320.00
at a rate of 14% per year
for 2 years is $ 649.60.
<em><u>Compound </u></em><em><u>interest</u></em>
Answer:
A = $2,945.78
A = P + I where
P (principal) = $2,320.00
I (interest) = $625.78
Calculation Steps:
First, convert R as a percent to r as a decimal
r = R/100
r = 12/100
r = 0.12 rate per year,
Then solve the equation for A
A = P(1 + r/n)nt
A = 2,320.00(1 + 0.12/12)(12)(2)
A = 2,320.00(1 + 0.01)(24)
A = $2,945.78
Summary:
