Orange Ltd opened a bank account 10 years ago with a principal amount of R2 000. The bank pays annual compound interest on the account. Today, the account has balance of R3 500. If the same interest rate is offered on an account paying simple interest, the interest rate is The value of the simple interest earned is The value of the compound interest earned is The additional interest earned over the same time period due to the bank paying compound interest rather than simple interest Note: Round off to the nearest whole number and do not include symbols in your answer i.e input 9 and not 9,13 or 9% 3334
Orange Ltd opened a bank account 10 years ago with a principal amount of R2 000. The bank pays annual compound interest on the account. Today, the account has balance of R3 500. If the same interest rate is offered on an account paying simple interest, the interest rate is The value of the simple interest earned is The value of the compound interest earned is The additional interest earned over the same time period due to the bank paying compound interest rather than simple interest Note: Round off to the nearest whole number and do not include symbols in your answer i.e input 9 and not 9,13 or 9% 3334
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:QUESTION 8
Orange Ltd opened a bank account 10 years ago with a principal amount of R2 000. The bank pays annual compound interest on the account. Today, the account has a
balance of R3 500.
If the same interest rate is offered on an account paying simple interest, the interest rate is
The value of the simple interest earned is 2
The value of the compound interest earned is 15
The additional interest earned over the same time period due to the bank paying compound interest rather than simple interest
Note: Round off to the nearest whole number and do not include symbols in your answer i.e input 9 and not 9,13 or 9%
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