SOLUTION: A. Find the amount after 6 years for initial investment of 23000 at rate of 2.25% compounded quarterly. B. Using same figure from part A, compute simple interest and amount. Compar
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-> SOLUTION: A. Find the amount after 6 years for initial investment of 23000 at rate of 2.25% compounded quarterly. B. Using same figure from part A, compute simple interest and amount. Compar
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Question 932921: A. Find the amount after 6 years for initial investment of 23000 at rate of 2.25% compounded quarterly. B. Using same figure from part A, compute simple interest and amount. Compare your results and suggest which one of two investment is more profitable.
I think part A is more profitable Answer by ewatrrr(24785) (Show Source):
You can put this solution on YOUR website! compounded quarterly:
A = 23000(1 + .025/4)^(4*6)
A = 23000(1.00625)^(24) = $26,709.72
.......
simple
I = 23000(.025)6yrs = 3$,450
A = 23000 + I = $26,450
