Question 1135557
For simple interest:
{{{ I = P*r*t }}}
{{{ P + I = P*( 1 + r*t ) }}}
{{{ P + i = 1000*( 1 + .08*1 ) }}}
{{{ P + i = 1.08*1000 }}}
{{{ P + I = 1080 }}}
$1,080
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For compound interest:
{{{ A = P*( 1 + r/n )^(n*t) }}}
{{{ n = 4 }}} (compounded quarterly )
{{{ t = 1 }}}
{{{ r = .06 }}}
{{{ A = 1000*( 1 + .06/4 )^( 4*1 ) }}}
{{{ A = 1000*1.015^4 }}}
{{{ A = 1000*1.06136 }}}
{{{ A = 1061.36 }}}
$1,061.36
The simple interest gives more return