What is 14,700 at 8% for 2 years?

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Answer 1 · 2017-01-03T12:50:16

Simple interest $\to 17052.00$ $" "->17052.00$
Compound interest $\to 17146.08$ $->17146.08$

$Note that interest type not stated$ $color(brown)("Note that interest type not stated")$

$Condition 1 - Simple interest$ $color(blue)("Condition 1 - Simple interest")$

$8 % \to \frac{8}{100}$ $8% -> 8/100$ so we have $\frac{8}{100} \times 14700 = 1176$ $8/100xx14700 = 1176$ interest for 1 years

So for 2 years we have: $2 \times 1176 = 2352$ $2xx1176 = 2352$ interest for 2 years

$14700 + 2352 = 17052.00$ $color(green)(14700+2352 =17052.00)$
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

$Condition 2 - Compound interest$ $color(blue)("Condition 2 - Compound interest")$

$14700 {(1 + \frac{8}{100})}^{2} = 17146.08$ $color(green)(14700(1+8/100)^2 = 17146.08)$