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August 23, 2014

August 23, 2014

Posted by **tisha** on Wednesday, August 22, 2012 at 1:09am.

a. What would be the future value if the interest rate is a simple interest rate?

b. What would be the future value if the interest rate is a compound interest rate?

- Finance -
**Henry**, Friday, August 24, 2012 at 12:15pma. P = Po + Po*r*t.

P = 10000 + 10000*0.08*5 = $14,000.

b. Compounded annually?

P = Po(1+r)^n.

P = 10,000(1.08)^5 = $14,693.28.

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