If you invest $500 at 10 percent interest per annum. at the end of 2 years with simple interest you will have $600 and with compound interest you will have $605.
We would be making use of financial calculator to find the compound interest by inputting the below data:
Present value=PV = -500 (ouflow)
Number of years=N = 2
Interest=I/Y = 10
Face value=?
Hence:
CPT FV = 605
Compound Interest = $605
Simple interest:
Simple Interest = $500+[2 x ($500x0.10)]
Simple interest=$500+(2×$50)
Simple Interest =$500+100
Simple interest =$600
Therefore If you invest $500 at 10 percent interest per annum. at the end of 2 years with simple interest you will have $600 and with compound interest you will have $605.
Learn more about Simple interest and compound interest here:https://brainly.com/question/20406888
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