Jackie invested 10 000 CHF at the end of 1971. The interest rate was 5% per annum.
How much interest in total would Jackie have earned at the end of year 1999 if:
(a) she had removed the interest from her account at the end of each year.
(b) she had not removed the interest from her account at the end of each year.
Working:
(a)
I = (PRT/100)
I = [(10 000 CHF)(5% P.A.)(1999-1971)] / 100
(b)
A = 10 000 CHF(1 + (5% P.A./100))^(1999-1971)
At what interest rate, compounded annually, would you need to invest $100 in order to have $125 in 2 years?
Working:
Use A = P (1+(r/100))^n
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