You just inherited $225,000. You are investing this money for 5 years at 6.25% simple interest.
In whole dollars, how much money will you have at the end of 5 years?
Interest expense is computed by multiplying the principal, interest rate and the time. In simple interest, only the principal account earn interest. Therefore, the amount of interest from period to period is the same, as long as there are no changes in principal, rate and time.
Answer and Explanation:
|Number of Years||5|
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Financial Accounting: Help and ReviewChapter 5 / Lesson 18