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October 24, 2014

October 24, 2014

Posted by **Anonymous** on Saturday, June 2, 2012 at 10:50pm.

(a) Calculate the future amount if the money were invested at simple interest

(b) Calculate the future amount if the money were invested with annual compounding. (Round your answer to the nearest cent.)

- Finance -
**Reiny**, Sunday, June 3, 2012 at 8:09ama) using simple interest for 20 years

amount = P + Prt

= 2000 + 2000(.12)(20) = 6800

b) -- compound interest (what's actually being done)

Amount = 2000(1.12)^20 = 19292.59

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