Homework Sourse16000 is invested for 2 years at an annual simple interest r
$16,000 is invested for 2 years at an annual simple interest rate of 16%.
(A) how much interest will be earned?
$
(B) what is the future value of the investment at the end of the 2years?
$
$16,000 is invested for 2 years at an annual simple interest rate of 16%.
(A) how much interest will be earned?
$
(B) what is the future value of the investment at the end of the 2years?
$
(A) how much interest will be earned?
$
(B) what is the future value of the investment at the end of the 2years?
$
Solution
(A) given, P=$ 16,000
t= 2 year,
r=rate =16%
therfore interst=I=PRt/100=16000*16*2/100=160*16*2=$ 5,120
(B) Future Value after 2 year=P+I=$16,000+ $ 5,120=$ 21,120
