Seatwork - Simple and Compound Interest

You might also like

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 2

1. P750 at 6.5% for 5 years compounded annually.

Simple Interest: SI = P(r)(t)


P = 750
r = 6.5%
t = 5 years
=750(0.065)(5)
= 243.75

Compound Interest: A = P(1 + r/n) (nt)


P = 750
r = 6.5%
n=1
t=5
A = 750 (1+0.065/1)1*5
= 1027.56

2. P25,000 at 8% for 3 years compounded annually.

Simple Interest: SI = P(r)(t)


P = 25,000
r = 8%
t=3
= 25,000(0.08)(3)
= 6000

Compound Interest: A = P(1 + r/n) (nt)


P = 25,000
r = 8%
n=1
t=3
A = 25,000(1+0.08/1)1*3
= 31492.8

3. P680 at 5.5% for 1.5 years compounded monthly.

Simple Interest: SI = P(r)(t)


P = 680
r = 5.5%
t = 1.5
= 680(0.055)(1.5)
= 56.1

Compound Interest: A = P(1 + r/n) (nt)


P = 680
r = 5.5%
n = 12
t = 1.5
=

4. P1500 at 4.5% for 2 years compounded monthly.

You might also like