Question

2 320 is invested for two years

Answer 1

Answer:

which is a better investment and by how much

It's 14% p.a simple interest

Step-by-step explanation:

Simple interst:

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.

Compound interest

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: