Question

**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?**

Answer #1

In simple interest the interest is calculated as amount of investment multiplied by interest rate. This mean the interest is paid only on the investment amount.

In compound interest the interest is calculated on both principal and interest earned. This means the amount of interest earned is added to value of investment to calculate the interest amount. It pays interest on interest.

The value of investment at end would be higher under compound interest rather than simple interest. If both the investment has same risk then it would be preferable to chose investment with compound interest to earn higher return on investment.

Thus, investment paying compound interest would be preferred.

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?

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

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

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?

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?

Define compound interest and investing. Could you sacrifice
something you spend money on today (lattes, cigarettes, lottery
tickets, fast food, etc.) in order to invest a bit each month? What
would it mean to you to feel secure about your retirement?

Seeking to either borrow or lend money at a given annual
compound interest rate or a simple interest rate over a term of 5
years will result in a preference for selecting:
the simple interest rate for the borrowing and the annual
compound interest rate for lending money.
the annual compound interest rate for the borrowing and the
simple interest rate for lending money.
the annual compound interest rate for both borrowing and for
lending money.
the simple interest rate...

How much money would you have to invest today, at an interest
rate of 5% in order to reach your goal of $1,000,000 in 30 years?
Assume you don't put any additional money into this investment.
$123,737.45
$321,377.45
$231,377.45
$132,733.45
How much money would you need to invest every year in order to
reach your goal of $1,000,000 in 30 years at the same interest rate
of 5%, if you had no money up-front TODAY to invest? (PV=0)
$15,051.44
$231,377.45...

5. James wants to invest $85000. He can invest the money at 7.3%
with interest compound monthly for 30yr or he can invest at 7.1%
with interest compounded continuously for 30yr. Which option
results in more total interest? Show your work
10. Solve the problem. The population of a country is modeled by
the function P(t) = 17.9e 0.01264t where P(t) is the population (in
millions) t years after January 1, 2000. Use the model to predict
the year during...

Given a similar interest rate and time: Would you prefer a
simple interest or compound interest loan ? Why?

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