Suppose you invest $5,000 for five years at an interest rate of 8 percent How much simple interest would you earn over the five years How much compound interest would you earn What is the explanation for the difference between these two amounts ...

Simple interest over the five years is 2000 8 x 5000 ...

Suppose you invest $5,000 for five years at an interest rate of 8 percent. How much simple

Question:

Suppose you invest $5,000 for five years at an interest rate of 8 percent. How much simple interest would you earn over the five years? How much would you earn? What is the explanation for the difference between these two amounts?
Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...