solve it plz 1. If you invest$10,000 for 10 years at 8%/year compound interest W
ID: 1093655 • Letter: S
Question
solve it plz
1. If you invest$10,000 for 10 years at 8%/year compound interest What is the closing balance at the end of the first year? Select one: a. $11600 b. $18000 c. $10800 d. $1000 1. If you invest$10,000 for 10 years at 8%/year simple interest. What is the interest charged per year? Select one: a. $800 b. $1000 c. $8 d. $80 If you invested $15,000 for the last x5 years with simple interest and it is now worth $20250 what as the interest rate at which the investment was made? Use simple interest. Select one: a. 11% b. 10% c. 5% d. 7%Explanation / Answer
1) After 1 year
Balance = 10000 x 1.08 = $ 10800
2) Interest charged per year = 0.08 x 10000 = $ 800
3) 20250 = 15000 x (1+R)
=> 1+R = 1.35
=> R = 0.35 or 35 % for 5 years
=> r = 35 / 5 = 7 % per year
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