Alan
Jackson invests $20,000 at 8% annual interest, leaving the money 8 years. At the
end of the 8 years, Alan withdrew the accumulated amount of money.
E6-2 (Simple and Compound Interest Computations) Alan Jackson invests $20,000 at 8% annual interest,
leaving the money 8 years. At the end of the 8 years, Alan withdrew the
accumulated amount of money.
Instructions
(a) Compute
the amount Alan would withdraw assuming the investment earns simple interest.
(b) Compute the
amount Alan would withdraw assuming the investment earns interest compounded annually.
(c) Compute
the amount Alan would withdraw assuming the investment earns interest
compounded semi-annually.
TUTORIAL
PREVIEW
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(a) Compute the amount Alan would withdraw assuming
the investment earns simple interest.
|
|
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Simple interest of $1,600 per year x 8
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$12,800
|
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Principal
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$20,000
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