A deposit of $10,000 is made into an account that earns 6% interest. What is the simple and compunt interest formula.

Question

asked Aug 12, 2020 145k views

1 Answer

Ctn · Answer 1 · 2020-08-18T19:00:13+0000

Answer:

Simple interest formula SI = PRT/100

Compound interest formula:

Amount = (P+R/100)^n

Simple interest = 10000 x 6 x 1/100

= $600

Add 600 to 10000

10000+600 = $10600

Amount = (10000 + 6/100)^1

= $10000.06

Hope this helps!