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How much money does Charlie have after the 15 years? $26$325$390$715
Between 10 years and 20 years, how much more interest would you expect the account to earn? less than $1,000$1,000$2,000✔ More than $2,000
How much interest will Charlie’s initial investment earn over the 15-year period?$26$325✔ $390$715
Simple interest: I = P · r · t
Which formula would be used for this situation?
will have the most money to spend.
Tim
Is Joni correct? Explain.
In your own words, without providing the formulas, describe the difference between simple interest and compound interest. Which type of interest earns money more quickly?
Simple interest is calculated only on the initial principal amount of an investment throughout its duration. In contrast, compound interest is calculated on the principal plus any interest that has already been earned or added to the account. Because interest is earned on interest, compound interest allows an investment to grow more quickly than simple interest.
Which statements about doubling an investment are true? Check all that apply.
An interest rate of % is required.
12
About how much money did Arturo’s parents invest after 10 years? $1,000$2,000✔ $6,000 $8,000
Sample response: Simple interest is applied only to principal investment amounts each year. Compound interest applies to principal investment amounts, but also applies to any previously earned interest. Compound interest earns money more quickly. Which of the following did you include in your response? Check all that apply.Simple interest is earned on the principal only.Compound interest is earned on the principal as well as any previously earned interest.Compound interest earns money more quick
About how much interest was earned after 10 years? $1,000✔ $2,000$6,000 $8,000
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