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Practice Problems 1. You invest $8,000 in a savings account, the interest rates a savings account, the interest rate is 12% p
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Answer #1

Ans 1) $ 17600.00

SIMPLE INTEREST
FV = PV + PV * Rate * Time
FV = 8000 + 8000 * 12% * 10
FV = 17600.00

Ans 2) $ 25657.08

FV = Future Value
PV = Present Value
r = rate of interest
n= no of period
Compound Interest
FV = PV (1 + r )n
FV = 8000*(1+12%/2)^20
FV = 25657.08
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