24. John has deposited $3,000 today in an account paying 5 percent interest annually. What would be the simple interest earned on this investment in six years? If the account paid compound interest, what would be the interest-on-interest in six years?

24. John has deposited $3,000 today in an account paying 5 percent interest annually. What would be the simple interest earned on this investment in six years? If the account paid compound interest, what would be the interest-on-interest in six years?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 18PROB

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24. John has deposited $3,000 today in an account paying
5 percent interest annually. What would be the simple
interest earned on this investment in six years? If the
account paid compound interest, what would be the
interest-on-interest in six years?

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