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suppose you are given $800 to invest. in one sentence, state which type of interest-10% simple interest or 9.5% interest compounded monthly- offers the best investment for a 5 year term. give a reason for your answer and provide accurate calculations to support your reasoning.

Respuesta :

Aliwohaish12

Simple: 800( 1 + 0.10*5) = 800(1.5) = $1200

Compound: 800(1+0.095/12)^(12*5) = $1284

Compounding at 9.5% will give you the better investment.

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