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For an investment of $100,000 at 2% interest for 9 years, find (a) the simple interest,...

For an investment of $100,000 at 2% interest for 9 years, find (a) the simple interest, and (b) the compound interest if interest is calculated once per year.

Math   Statistics-And-Probability   
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Answer #1

Given:

Principal, P = $100,000

Rate of interest, r = 2%

Time period, n = 9 year

Simple interest :

Therefore a) simple interest = $18,000

b) compound interest = $19509.26

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