Cassy Nillo invested an amount of P 10 000.00 for two years at 8% simple interest....

Transcribed Image Text:

Cassy Nillo invested an amount of P 10 000.00 for two years at 8% simple interest. Jay makes the same investment on the same terms, but interest is compounded annually. What is the difference in earnings between the two investments made? 2. Emie Lee invested P 48 000.00 in the money market at a 10% interest rate last March 18, 2018. She plans to get back the money by January 28, 2021. Suppose the borrower insists on paying exact interest instead of ordinary interest. How much does he lose or gain in interest? 3. Suppose that Weng has P 85,000.00. He decided to deposit it in a bank and will not withdraw from it for five years. A bank offers two types of compound interest accounts. The first account offers 5% interest compounded semi-annually and the second account offers 4.5% interest compounded monthly. Which account will he choose if he wants his money to earn more? Cassy Nillo invested an amount of P 10 000.00 for two years at 8% simple interest. Jay makes the same investment on the same terms, but interest is compounded annually. What is the difference in earnings between the two investments made? 2. Emie Lee invested P 48 000.00 in the money market at a 10% interest rate last March 18, 2018. She plans to get back the money by January 28, 2021. Suppose the borrower insists on paying exact interest instead of ordinary interest. How much does he lose or gain in interest? 3. Suppose that Weng has P 85,000.00. He decided to deposit it in a bank and will not withdraw from it for five years. A bank offers two types of compound interest accounts. The first account offers 5% interest compounded semi-annually and the second account offers 4.5% interest compounded monthly. Which account will he choose if he wants his money to earn more?

Answer rating: 100% (QA)

1 To calculate the simple interest earned by Cassy Nillo Simple Interest Principal P Rate R Time T Given Principal P 10000 Rate R 8 008 expressed as a ... View the full answer