SOLUTION: find the interest on $2700 that is invested at 4% for 2 1/2.

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Question 287103: find the interest on $2700 that is invested at 4% for 2 1/2.

Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
find the interest on $2700 that is invested at 4% for 2 1/2 yrs.
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What kind of interest? simple or compound?
If simple interest Interest = Prt = (2700)(0.04)(2.5) = $270
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If compounded annually: Interest = (2700)(1+0.04)^2.5 - 2700
= 2700[(1.04)^2.5 - 1]
= 2700[0.1030]
= $278.15
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Cheers,
Stan H.
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