Question

Consider an investment of 2,503.00 invested for 15 years at a simple annual rate of 6.00%....

Consider an investment of 2,503.00 invested for 15 years at a simple annual rate of 6.00%. How much MORE can you make on this investment if the interest rate had coumpounded annually ? Keep answers to two decimals, such as 1234.62
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Answer #1

ANSWER = You can make 1,242.89 more on this investment if the interest rate had coumpounded annually.

Principal = 2,503

Time = 15

Rate = 6%

SIMPLE ANNUAL RATE

Amount = Principal + Interest

COMPOUNDED ANNUALLY

Difference in both the amount = 5998.59 - 4755.7 = 1,242.89

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