Question

If you invest $8,000 at 12% interest, how much will you have in 7 years?

Answer 1

$17685.45 for compound interest and $14720 for simple interest.

Explanation:

The compound-interest formula for growth is`P(1+p/100)^N`, where P is the principal amount, p is the percentage interest/year and N is the number of years.

For simple interest, it is P(1+Np/100).

Here, P = $8000, p = 12 and N= 7.
#8000(1+0.12)^7=17685.45 and 8000(1+0.12 X 7) = 14720. ,