SOLUTION: Jim Davis invested $14,000 for a period of 2 years at an interest rate of 4.25% compounded annually. Using the simple interest formula and compound interest, calculate the follo

Algebra ->  Finance -> SOLUTION: Jim Davis invested $14,000 for a period of 2 years at an interest rate of 4.25% compounded annually. Using the simple interest formula and compound interest, calculate the follo      Log On


   

Question 838776: Jim Davis invested $14,000 for a period of 2 years at an interest rate of 4.25% compounded annually.
Using the simple interest formula and compound interest, calculate the following. (Round your responses to the nearest cent if necessary.)
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi

Finding the Accumulated Amount after 2 years

Using compound interest

A+=+P%281%2Br%2Fn%29%5E%28nt%29

A+=14000%281.0425%29%5E%282%29

Using simple interest: A = 14000+%2B+.0425%2A2%2A14000