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Back to Simple and Compound Interest

Exercise 5

Avg difficulty 2.5

Consider an investment of $20000 with an annual interest rate of 5%.

  1. If that investment is earning simple interest, how much will the investment be worth in 10 years?

  2. If that investment is getting annually compounding interest, how much will the investment be worth in 10 years?

Lee et al., Math in Society, §2.2 Simple and Compound Interest, Exercise 5

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Adapted from Math in Society © 2018–2024 Portland Community College Math Instructors. Licensed under CC BY-SA 4.0. Source: Math in Society. Imported at revision 68ee43c.