Question

What is the interest if the principal is ten thousand dollars the interest rate is two percent and the time is eight years

Answer 1

$1600 in simple interest

$1664 in compound interest

Explanation:

Simple interest for 8 years

10000 x (0.02 x 8) = 1600

compound interest

10000 x ((1+0.02)^8 - 1) = 10000 x (1.1664 - 1) = 10000 x 0.1664 = 1664