Question

If you were to invest $1000 for 3 years would you rather receive simple interest or compound interest for your investment? why?

Answer #1

When Investing it is beneficial to receive compound Interest on Investment rather than Simple Interest. As in simple interest, Interest is computed on Investment amount while in compounding Interest you receive Interest on Interest along with interest on Investmnet amount.

In compounding Interest, Interest is added to Investment amount after a compounding period(like 3 months, 6 months or yearly are known are compounding periods depending upon what you choose). The next Interest you earn in next compounding period will be computed on Investmnet plus the interest you already earned. Thus, in compounding you earn interest on interest will increases our future value of investmnet.

In simple Interest, interest is computed only on Investment value and it does not consider interest on interest.

hence, **it is beenficial to receive compound interest for
your investment**

If you were looking to invest money and you could get
simple interest or compound interest and both investments had the
same risk, which would you chose?

You can invest in an account that pays simple interest or an
account that pays compound interest. In either case, you plan to
invest $658 today and both accounts have an annual interest rate of
5.5%. How much more interest will you receive in the 7th year in
the account that pays compound interest? Round your answer to the
nearest penny, and do not type the "$" sign?

You can invest in an account that pays simple
interest or an account that pays compound interest. In either case,
you plan to invest $3,000 today and both accounts have an annual
interest rate of 9 %. How much more interest will you receive in
the 11th year in the account that pays compound
interest?

You can invest in an account that pays simple interest or an
account that pays compound interest. In either case, you plan to
invest $2,700 today and both accounts have an annual interest rate
of 6 percent. How much more interest will you receive in the 9th
year in the account that pays compound interest?
$96.20
$109.05
$113.36
$109.87
$162.00

1) You
can invest in an account that pays simple interest or an account
that pays compound interest. In either case, you plan to invest
$3,600 today and both accounts have an annual interest rate of 8
percent. How much more interest will you receive in the 7th year in
the account that pays compound interest?

Would you rather receive: $15,000
in three years, $1,000 per year for 20 years or $2000 per year for
15 years if the discount rate is 20%?
why

1. Would you rather receive: $15,000 in three years, $1,000 per
year for 20 years or $2000 per year for 15 years if the discount
rate is 20%?
2. Why?

If we assume and interest rate of 5% would you rather have
$1,000 today or receive $1, 120 in 3 years? Please explain why.
Assume that two athletes sign 10 -year contracts that pay out a
total of $100 million over the life of the contracts. One contract
will pay the $100 million in equal installments. The other contract
will pay the $100 million in installments, but the installments
increase 5% per year. Which athlete received the better deal?
Please...

Would you rather receive S7,000 at the end of each year starting
one year from now for ten years or would you rather have $58,000
today? Ignore taxes. Support your view. Assume you believe the
appropriate investment rate you could earn on your money would be 9
percent.

If
you invest $10,000 at 3% simple interest for 20 months, how much
interest will you earn?

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