What is 14,700 at 8% for 2 years?

1 Answer
Jan 3, 2017

Answer:

Simple interest #" "->17052.00#
Compound interest #->17146.08#

Explanation:

#color(brown)("Note that interest type not stated")#

#color(blue)("Condition 1 - Simple interest")#

#8% -> 8/100# so we have #8/100xx14700 = 1176# interest for 1 years

So for 2 years we have: #2xx1176 = 2352# interest for 2 years

#color(green)(14700+2352 =17052.00)#
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

#color(blue)("Condition 2 - Compound interest")#

#color(green)(14700(1+8/100)^2 = 17146.08)#