Question 1131299: A=P+P*r*t
where A is the Amount (total principal plus interest) required to repay the loan, P is the Principal, r is the annual interest rate (quoted as a percent, but used as a decimal), and t is the time in years.
Complete the table below with the amounts you would have if you invested $1,000 at 7% interest with simple interest and with interest compounded annually.
Simple Interest Compound Interest
1 year $_____ $______
2 years $_____ $______
3 years $_____ $______
4 years $_____ $______
5 years $_____ $______
Please help, I have been stumped on this question for quite sometime. :(
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! simple interest I=prt=1000*0.07*t
1000*0.07=$70
$1070 for year 1
$1140 for year 2
$1210 for year 3
$1280 for year 4
compound
A=Ao(1+.07/1)^t in years
year 1 is $1070
year 2 is 1000(1.07)^2=$1144.90
year 3 is 1000(1.07)^3=$1225.04
year 4 is 1000(1.07)^4=$1310.80
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