Randeep1233
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Q:There are two investment proposals for $30 000 for 3 years
Proposal 1: put the money in bank A at a simple interest of 12%p.a
Proposal 2ut the money in bank B at an interest rate of 10% p.a compounded yearly.
(a) which proposal can earn more interest
My steps:bank a amount 30000(1+12%)^3 thn amount minus principal
Bhank b 30000(1+10%/12)^3 thn amount minus principal
but my answer is wrong
Find amount n compounded interest:
Principal:25 000 interest:8%p.a compounded half yearly period3.5yrs
25 000(1+0.08/2)^3.5×2 is it correct
Pls give me the correct solution of these 2 questions and explain.
Thanks alot!
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Sir Cumference
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(Original post by Randeep1233)
Q:There are two investment proposals for $30 000 for 3 years
Proposal 1: put the money in bank A at a simple interest of 12%p.a
Proposal 2ut the money in bank B at an interest rate of 10% p.a compounded yearly.
(a) which proposal can earn more interest

Find amount n compounded interest:
Principal:25 000 interest:8%p.a compounded half yearly period3.5yrs
Pls give me the solution of these 2 questions and explain.
Thanks alot!
Please post your ideas/working.

This is not a homework forum and we can't help you unless you make an attempt.
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Old_Simon
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Did you do Calculus yet ?
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brianeverit
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(Original post by Randeep1233)
Q:There are two investment proposals for $30 000 for 3 years
Proposal 1: put the money in bank A at a simple interest of 12%p.a
Proposal 2ut the money in bank B at an interest rate of 10% p.a compounded yearly.
(a) which proposal can earn more interest

Find amount n compounded interest:
Principal:25 000 interest:8%p.a compounded half yearly period3.5yrs
Pls give me the solution of these 2 questions and explain.
Thanks alot!
If principal is P, time period T and rate of interest R (expressed as a decimal) and Interest I then
For Simple Interest I=P x R x T
For Compound Interest  I=P((1+R)^T-1)
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