SOLUTION: The Compound interest is 1590 for 2 years at the rate of 12% PA Find the simple interest for the same period for 16% Hint Answer is 2000 Compound interest=1590 it is not the p

Algebra ->  Finance -> SOLUTION: The Compound interest is 1590 for 2 years at the rate of 12% PA Find the simple interest for the same period for 16% Hint Answer is 2000 Compound interest=1590 it is not the p      Log On


   

Question 700945: The Compound interest is 1590 for 2 years at the rate of 12% PA Find the simple interest for the same period for 16%
Hint Answer is 2000
Compound interest=1590 it is not the principal
Rate =12%
Time=2years
Answer by stanbon(75887) About Me  (Show Source):
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The Compound interest is 1590 for 2 years at the rate of 12% PA Find the simple interest for the same period for 16%
Hint Answer is 2000
Compound interest=1590 it is not the principal
Rate =12%
Time=2years
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Compound information:
P+I = P(1+(r/n))^(nt)
P+1590 = P(1+(0.12/1))^(1*2)
P+1590 = P(1.2544)
0.2544P = 1590
P = $6250
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Simple Interest information:
I = Prt
I = 6250*0.16*2
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I = $2000
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Cheers,
Stan H.
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