1. compare the interest rate earned on $15000 for 25 years at 7% simple interest
ID: 1239350 • Letter: 1
Question
1. compare the interest rate earned on $15000 for 25 years at 7% simple interest with the amount of interest earned if interest were compounded annually?SIMPLE INTEREST:
I=iPN=(0.07)($15,000)(25)
I=$26,250
COMPOUND INTEREST
I=P[(1+i)^N-1]
I=$15,000[(1+i)^25-1]
I=$66,411.5
2.how many years will it take to double your investment of $2000if it has an interest rate of 6% compound
annually?
F=2P=P(1+0.06)^N
LOG2=N LOG1.06
N=11.9 OR 12 YEARS
3. how many years it will take an investment to triple itself if the interest rate is 7%compound annualy?
F=3P=P(1+I)^N
LOG3=N LOG(1+0.07)
N=16.24 OR 15 YEARS
this is the away I did but dont know if its right or wrong .can some help me please?
Explanation / Answer
all is correct
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