Question
$4,000 at 10% for 20 years
(a) Calculate the future amount if the money were invested at simple interest.
(a) Calculate the future amount if the money were invested at simple interest.
Answers
Pt = Po + Po*r*t.
Pt = 4000 + 4000*0.1*20 = $12,000.
Pt = 4000 + 4000*0.1*20 = $12,000.