Using the formula. I =Prt ,calculate the simple interest where t=1/n and n is the number of periodd per year for compounding.

You have $20,000 and wished to invest it in one of
two ways.
Option A: You may invest it in a certificate of deposit for 10 years at an interest rate of 4% compounded monthly. (n =12 t =1/12
Option B: You may invest it in a certificate of deposit for 5 years at an interest rate of 8% compounded daily. (n = 360 t = 1/360)
Calculate the amount of interest that you would make each investment.

A.12mo/yr. * 10yrs. = 120 months

I = Po*r*t = 20,000*(0.04/12)*120 =

B. 360days/yr * 5yrs. = 1800 days
I = 20,000*(0.08/360)*1800 =

To calculate the interest for each investment using the formula I = Prt, we need to plug in the values for P (principal amount), r (interest rate), and t (time).

For Option A:
P = $20,000
r = 4% = 0.04
n = 12 (compounded monthly)
t = 1/12 (since n is the number of periods per year)

Using these values, we can find the interest using the formula:

I = 20000 * 0.04 * (1/12)
I = $666.67 (rounded to the nearest cent)

Therefore, the amount of interest for Option A is $666.67.

For Option B:
P = $20,000
r = 8% = 0.08
n = 360 (compounded daily)
t = 1/360 (since n is the number of periods per year)

Using these values, we can find the interest using the formula:

I = 20000 * 0.08 * (1/360)
I = $44.44 (rounded to the nearest cent)

Therefore, the amount of interest for Option B is $44.44.