Hi,



$16000 is invested for 5 years at 8% compounded annually.  

In General 

A = Accumulated Amount

P= principal = 16000

r= annual rate = .08

n= periods per year = 1  (annually)

t= years =  5

 = $23,509.25  0r  I = $7509.25

find the simple interest rate that should deliver 

the same overall interest at the end of the 5 years. 

 I = Prt 0r  r = I/Pt =  $7509.25/5*16,000 = r 

 

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