OpenStudy (anonymous):

You have an investment of \$145 000.00 you want to invest for 199days at a rate of 6.2%.The investment house gives you 2 options. they inform you tha you should choose between simple interest and compound interest. calculate the difference between the options. show the formula

6 years ago
OpenStudy (anonymous):

Okay, so do you know what simple and compound interest are?

6 years ago
OpenStudy (anonymous):

Simple interest formula= INTEREST=PRINCIPLE*RATE*TIME OR I=PRT .

6 years ago
OpenStudy (anonymous):

Compound Interest Formula: P is the principal (the initial amount you borrow or deposit) r is the annual rate of interest (percentage) n is the number of years the amount is deposited or borrowed for. A is the amount of money accumulated after n years, including interest. When the interest is compounded once a year: A = P(1 + r)n

6 years ago
OpenStudy (anonymous):

so what is the answer my dear

6 years ago
OpenStudy (anonymous):

You plug in your givens into the equations that mimig97 explained. It's as simple as that.

6 years ago
OpenStudy (anonymous):

Yup just plug in your numbers into the equations. ;)

6 years ago
OpenStudy (anonymous):

However I believe it's A=P(1+r) ^n. Remember that n is for the number in years. When it's asking for 199 days you'll need to convert that into years. It should be a fraction

6 years ago
OpenStudy (anonymous):

oh, yes, that's the right equations... sorry!

6 years ago
OpenStudy (anonymous):

Lol no problem :3

6 years ago
OpenStudy (anonymous):

The is a compound interest, the full future value of the investment present value of the investment the interest rate time of the investment in years, can you help

6 years ago
OpenStudy (anonymous):

But you need to know how often it is being compunded within the 199 days span. Is it after every 3 months, 3 days etc. It needs to be specified

6 years ago