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Question 1: If you invested $10,000 and earned simple interest of 12% for 3 years, what would be the total accumulated year-end balance at the end of year three? Show your calculation. Then review the compound interest section on page E-2 and E-3. As you know, compound interest will calculate interest for the period based on the original principal plus any interest earn that has not been paid or withdrawn. Please note the difference in the interest earned on the $1,000 investment using simple versus compound interest in illustration E-2. The interest is the same amount for the first period, but thereafter is greater for the compound interest. 2. If you invested $10,000, and earned compound interest of 12% per year, what would be the total accumulated Year-end balance at the end of year three?
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