to define simple and compound interest > to illustrate simple and compound interest Direction: Complete the table that illustrates the balance after 4 years with simple and complete interest Time I- Principal (P) Amount after t years (Maturity Value) Simple Interest Solution Answer (5,000)(0.25)(1) 1,250 5,000+1,250-6,250 2 5,000+2,500-7,250 3. P5,000 (5,000)(0.25)(3) 5,000 5,000+5,000-10,000 Compound Interest Amount a fter t vears (Maturity
to define simple and compound interest > to illustrate simple and compound interest Direction: Complete the table that illustrates the balance after 4 years with simple and complete interest Time I- Principal (P) Amount after t years (Maturity Value) Simple Interest Solution Answer (5,000)(0.25)(1) 1,250 5,000+1,250-6,250 2 5,000+2,500-7,250 3. P5,000 (5,000)(0.25)(3) 5,000 5,000+5,000-10,000 Compound Interest Amount a fter t vears (Maturity
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
Problem 1PS
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Question
Direction: Complete the table that illustrates the balance after 4 years with simple and complete interest
Transcribed Image Text:to define simple and compound interest
> to illustrate simple and compound interest
Direction: Complete the table that illustrates the balance after 4 years with
simple and complete interest
Time
-
Principal
(P)
Amount after t years (Maturity
Value)
Simple Interest
Solution
Answer
(5,000)(0.25)(1)
1,250
5,000+1,250-6,250
5,000+2,500-7,250
P5,000
(5,000)(0.25)(3)
3.
4
5,000
5,000+5,000-10,000
Time
Prineipal (P)
Compound Interest
Amount after t years (Maturity
Solution
Answer
Value)
1
(5,000)(0.25)(1)
1,250
5,000 + 1,250 =6,250
(6,250)(0.25)(2)
3
P5,000
(9,375)(0.25)(3)
9,375+7,031.25-16,406.25
4.
16,406.25
Answer the quontic
helow bged on the above octivity VWrite vour answer on
Transcribed Image Text:to define simple and compound interest
to illustrate simple and compound interest
Direction: Complete the table that illustrates the balance after 4 years with
simple and complete interest
Time
-
Amount after t years (Maturity
Principal
(P)
Simple Interest
Solution
Answer
Value)
(5,000)(0.25)(1)
1,250
5,000+1,250-6,250
5,000+2,500-7,250
P5,000
(5,000)(0.25)(3)
3.
4
5,000
5,000+5,000-10,000
Principal (P)
Compound Interest
Amount after t years (Maturity
Time
Solution
Answer
Value)
1
(5,000)(0.25)(1)
1,250
5,000 + 1,250 =6,250
(6,250)(0.25)(2)
(9,375)(0.25)(3)
3
P5,000
9,375+7,031.25-16,406.25
4.
16,406.25
Answer the quentic
helow bged on the above octivity VWrite vour answer on
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