You have an opportunity to invest your $25,000.00, in a local company that has offered to...

Question

Question

business accounting

Answer 1

Answer #1

Answer:

Total principal at the end of second year = $29430

Total interest at the end of second year = $4430

Explanation:

Computation of Total principal and interest at the end of second year:

Step 1:

Interest at the end of first year = $25000 x 8% = $2000

Principal at the end of first year = $25000 + $2000 = $27000

Step 2:

Interest at the end of second year = $27000 x 9% = $2430

Pricipal at the end of second year = $27000 + $2430 = $29430.

Total interest at the end of second year = $29430 - $25000 = $4430.

Answer 2

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