Question

What will be the simple interest earned when you invest $1,000 for 3 years at 10 percent and the compound interest earned when you invest the same sum for 2 years at 5 percent ? The simple interest earned when you invest $1,000 for 3 years at 10 % is $ . The interest compounded when you invest the same sum for 2 years at 5 % is $ .

Answer 1

Answer:

The simple interest earned when you invest $1,000 for 3 years at 10 % is $ 300 . The interest compounded when you invest the same sum for 2 years at 5 % is $ 331 .

Step-by-step explanation:

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Answer 2

Answer:

simple interest = $300

compound interest =$102.5

Step-by-step explanation:

Simple interest = P* T* R

P= principal, T= time, R= rate

P= $1000,  T= 3,  R = 0.1

simple interest = 1000 * 3 *0.1 = $300

compound interest = p[(1 + r)ⁿ - 1]

compound interest = 1000[(1 + 0.05)² - 1]

                                 =  1000[1.1025 - 1]

                                   = 1000 * 0.1025

                                   = $102.5