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1. compare the interest rate earned on $15000 for 25 years at 7% simple interest with the amount of interest earned if interest were compounded annually?
SIMPLE INTEREST:I=iPN=(0.07)($15,000)(25)I=$26,250
COMPOUND INTERESTI=P[(1+i)^N-1]I=$15,000[(1+i)^25-1]I=$66,411.5
2.how many years will it take to double your investment of $2000if it has an interest rate of 6% compoundannually?
F=2P=P(1+0.06)^NLOG2=N LOG1.06N=11.9 OR 12 YEARS
3. how many years it will take an investment to triple itself if the interest rate is 7%compound annualy?
F=3P=P(1+I)^NLOG3=N LOG(1+0.07)N=16.24 OR 15 YEARS
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