suppose youre offered the following two accounts to invest $10,000 for 20 years: 12% simple interest and 4%…

suppose youre offered the following two accounts to invest $10,000 for 20 years: 12% simple interest and 4% interest compounded monthly. which is the best choice?\npart: 0 / 3\npart 1 of 3\nthe future value of $10,000 using 12% simple interest is $ \nround your answer to the nearest cent. do not round any intermediate steps.

suppose youre offered the following two accounts to invest $10,000 for 20 years: 12% simple interest and 4% interest compounded monthly. which is the best choice?\npart: 0 / 3\npart 1 of 3\nthe future value of $10,000 using 12% simple interest is $ \nround your answer to the nearest cent. do not round any intermediate steps.

Answer

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $A = P(1+rt)$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Here, $P=$10000$, $r = 0.12$ (since $12%=0.12$), and $t = 20$ years.

Step2: Substitute values into the formula

$A=10000\times(1 + 0.12\times20)$ First, calculate the value inside the parentheses: $0.12\times20=2.4$, then $1 + 2.4=3.4$. Next, multiply by the principal: $A = 10000\times3.4=$34000$

Answer:

$34000.00$