What is the amount of interest earned on $5,000 for eight years at 10% simple interest per year? If you open a savings account that earns 7.5% simple interest per year, what is the minimum number of years you must wait to double your balance? Suppose you open another account that earns 7% interest compounded yearly. How many years will it take now to double your balance?Compare the interest earned by $10,000 for five years at 10% simple interest with that earned by the same amount for five years at 10% compounded annually. 1. What is the amount of interest earned on $5,000 for eight years at 10% simple interest per vear?2. If you open a savings account that eams 7.5% simple interest per year, what is the minimumnumber of years Xou must wait to double your balance? Suppose vou open another account thatearms 7% interest compounded yearly. How many vears will it take now to double your balance?3. Compare the interest earned by $10,000 for five vears at 10% simple interest with that earned bythe same amount for five vears at 10% çompounded annually.

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Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter16: Interest, Rent, And Profit

Section: Chapter Questions

Problem 1WNG

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What is the amount of interest earned on $5,000 for eight years at 10% simple interest per year?

If you open a savings account that earns 7.5% simple interest per year, what is the minimum number of years you must wait to double your balance? Suppose you open another account that earns 7% interest compounded yearly. How many years will it take now to double your balance?
Compare the interest earned by $10,000 for five years at 10% simple interest with that earned by the same amount for five years at 10% compounded annually.

1. What is the amount of interest earned on $5,000 for eight years at 10% simple interest per vear?
2. If you open a savings account that eams 7.5% simple interest per year, what is the minimum
number of years Xou must wait to double your balance? Suppose vou open another account that
earms 7% interest compounded yearly. How many vears will it take now to double your balance?
3. Compare the interest earned by $10,000 for five vears at 10% simple interest with that earned by
the same amount for five vears at 10% çompounded annually.

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