If 1 000 is invested for 10 years earning a 9 rate of intere

If $1, 000 is invested for 10 years earning a 9% rate of interest, how much interest will be earned?

Solution

Let P = principal

Rate = R % per annum

Time = T years

simple interest is (P* R * T)/100

=(1000* 9* 10)/100

=900

compound interest is P(1+R/100)^T

=1000(1+ 9/100)¹⁰

=2367.36