Question

a) Kai invests $400 of his savings for 2 years at 5% per year compound interest.

calculate the amount he has at the end of the 2 years.


b) Kai's Sister also invests $400 at r% per year *SIMPLE INTEREST*. At the end of 2 years she has exactly the same amount as Kai.
Calculate r.

Answer 1

a) p(1+r/100)^t...400(1+5/100)^2...400(1+1/20)^2...400(21/20)^2...400(21/20)^2...400×441/400...final answer..=441