Suppose you have $20,000 to invest and you believe that you can earn 12 per year over

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Suppose you have $20,000 to invest and you believe that you can earn 12 per year over the next 5 years.

i. How much would you have at the end of 5 years using compound interest?

ii. How much would you have using simple interest?

iii. Why these two figures are not the same?

Related Book For answer-question

Personal Finance An Integrated Planning Approach

ISBN: 978-0136063032

8th edition

Authors: Ralph R Frasca

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Posted Date: Jul 18, 2019 11:01 AM

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Suppose you have $20,000 to invest and you believe that you can earn 12 per year over

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I the amount at the end of 5 years using compound interest P1r n 200001012 5 2000017623 35... View the full answer

Personal Finance An Integrated Planning Approach

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