A bank offers two interest account plans. Plan A gives you 6% interest compounded annually. Plan B gives you 13% annual simple interest. You plan to invest 2,000 for the next 4 years. Which account earns you the most interest (in dollars) after 4 years? How much will you have earned?

Question

anonymous · Answer

Please Help Me!

anonymous · Answer

@Ashes.boom @Catlover5925

catlover5925 · Answer

im not sure I will tag helpers

anonymous · Answer

ok :)

ashes.boom · Answer

Simple Interest Formulas and Calculations: Use this simple interest calculator to find A, the Final Investment Value, using the simple interest formula: A = P(1 + rt) where P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods.

catlover5925 · Answer

what about the compounded intrest tho @Ashes.boom 
@bibby @preetha please help

anonymous · Answer

@Ashes.boom Thx for giving me the formula for simple interest formula! That will really help :D

anonymous · Answer

Do You know the formula for the compounded annually rate part?

ashes.boom · Answer

Your welcome. I dont really know how to do these problems so i googled the definition so let me check okay

anonymous · Answer

kk

ashes.boom · Answer

http://en.wikipedia.org/wiki/Compound_annual_growth_rate try that one i have another one ill give you too

ashes.boom · Answer

http://www.investopedia.com/calculator/annualcompoundedrate.aspx

anonymous · Answer

wow! that will work, Thank You :D

ashes.boom · Answer

Your welcome @kittenlover731 :)