+16 display the value of two different investments after 2 years , 6 years , 10 years , 14 years , and 17 years on the grid provided . investment one was $10000 earning simple interest at 5% per year . investment two was $10000 earning the same rate but compounded semi-annually .
display the value of two different investments after 2 years , 6 years , 10 years , 14 years , and 17 years on the grid provided . investment one was $10000 earning simple interest at 5% per year . investment two was $10000 earning the same rate but compounded semi-annually .
Simple interest:
10,000 x 5% =$500 simple interest for 1 year.
$500 x 2 =$1,000 for 2 years.
$500 x 6 =$3,000 for 6 years.
$500 x 10 =$5,000 for 10 years.
$500 x 14 =$7,000 for 14 years.
$500 x 17 =$8,500 for 17 years.
Compound interest:
FV = PV[1 + R]^N
FV =10,000[1 +0.05/2]^(2*2) =$11,038.13 - $10,000 =$1,038.13 compound interest for 2 years.
$3,448.89 for 6 years.
$6,386.16 for 10 years.
$9,964.95 for 14 years.
$13,153.22 for 17 years.
