SOLUTION: John has $ 5,600 to invest. He could put his money in fixed deposit earning 3 % simple interest annually or invest in a unit trust with a return equivalent to 4.5 % compound intere

Algebra ->  Percentages: Solvers, Trainers, Word Problems and pie charts -> SOLUTION: John has $ 5,600 to invest. He could put his money in fixed deposit earning 3 % simple interest annually or invest in a unit trust with a return equivalent to 4.5 % compound intere      Log On


   

Question 438863: John has $ 5,600 to invest. He could put his money in fixed deposit earning 3 % simple interest annually or invest in a unit trust with a return equivalent to 4.5 % compound interest per annum. At the end of two years, he would get $ 180 more by investing in the unit trust. Is this correct?
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!


The three percent investment pays:

dollars

The 4.5 percent investment pays:

dollars

Just do the arithmetic.


John

My calculator said it, I believe it, that settles it
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