The question: Nicole invested 25,000$ in coca cola stocks compounded yearly at a rate of 5% per annum for 25 years, determine the possibly amount of the interest to earn
Would it be 25000x0.05x25
Would it be 25000x0.05x25
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You are NOT correct
It is simple interest
Compound interest = 25000(1+0.05)^25 - 25000
= 84658.87 - 25000
= $59658.87
>>>>>>>>>>>>>>
11.75% = 0.1175
Amount = 25000(1+0.1175/2)^10*2
= 25000(1.05875)^20
= $78308.42
It is simple interest
Compound interest = 25000(1+0.05)^25 - 25000
= 84658.87 - 25000
= $59658.87
>>>>>>>>>>>>>>
11.75% = 0.1175
Amount = 25000(1+0.1175/2)^10*2
= 25000(1.05875)^20
= $78308.42
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Nicole wants to invest dad's money
Find the final capital ie with the interest
Cf = Ci (1 + 0.05) ^25
Deduct the initial capital Ci = 25000
interests = Cf - Ci
Find the final capital ie with the interest
Cf = Ci (1 + 0.05) ^25
Deduct the initial capital Ci = 25000
interests = Cf - Ci