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Simple and Annually Compounding Interest

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Sunny Shine invested $4,000 at 5% annual interest, and left the money invested without withdrawing any of the interest for 10 years. At the end of the 10 years, Sunny withdrew the accumulated amount of money.

1. What amount did Sunny withdraw assuming the investment earns simple interest?

2. What amount did Sunny withdraw assuming the investment earns interest compound annually?

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Solution Summary

Word doc attached gives calculations to find how much a company makes off a $4,000 investment at 5%.

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Sunny Shine invested $4,000 at 5% annual interest, and left the money invested without withdrawing any of the interest
for 10 years. At the end of the ...

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