Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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![**Simple Interest Calculation Exercise**
Calculate the amount of simple interest earned.
**Principal Amount:** $1,000
**Interest Rate:** 4%
**Time Period:** 7 years
Enter your answer in the box provided.
**Need Help?**
If you need assistance, click the "Read It" button for more information on how to calculate simple interest.
**Explanation:**
The simple interest formula used for this calculation is:
\[ \text{Simple Interest (SI)} = \frac{{P \times R \times T}}{100} \]
Where:
- \( P \) is the principal amount ($1,000),
- \( R \) is the rate of interest per annum (4%),
- \( T \) is the time period in years (7 years).](https://content.bartleby.com/qna-images/question/b020c391-051d-4df7-9efc-8e680de59ef9/1213a304-7cc6-4c9c-91a2-00c6fe2d364f/08q9eid.jpeg)
Transcribed Image Text:**Simple Interest Calculation Exercise**
Calculate the amount of simple interest earned.
**Principal Amount:** $1,000
**Interest Rate:** 4%
**Time Period:** 7 years
Enter your answer in the box provided.
**Need Help?**
If you need assistance, click the "Read It" button for more information on how to calculate simple interest.
**Explanation:**
The simple interest formula used for this calculation is:
\[ \text{Simple Interest (SI)} = \frac{{P \times R \times T}}{100} \]
Where:
- \( P \) is the principal amount ($1,000),
- \( R \) is the rate of interest per annum (4%),
- \( T \) is the time period in years (7 years).
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- Determine the interest earned after 8 years if $3000 is invested in each of the following accounts. A) an account earning 5.29% interest compounded daily B) an account earning 5.14% simple interestarrow_forwardFind the compound amount for the deposit and the amount of interest earned. $8800 at 4% compounded quarterly for 3 years .... The compound amount after 3 yeara is $ (Do not round until the final answer. Then round to the nearest cent as needed.)arrow_forwardFind the compound amount and the amount of interest earned by the following deposit. $3,000 at 4.77% compounded continuously for 9 years. What is the compound amount? (Round to the nearest cent.)arrow_forward
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