Michael has 2 options to invest $ 10,000: 1. 4% simple interest for 10 years or 2. 3.25% compound interest for 10 years. which will earn him more money?

answers:

a. option 1

b. option 2

c. they are equal

Simple interest will earn Michael more money. Hence option 1 is the correct answer

Solution:

Michael has two options to invest $10,000.

First option is 4% Simple Interest for 10 years and second option is 3.25% Compound Interest for 10 years.

We need to find out which option will earn him more money.

To find that out we have to calculate the simple interest and compound interest for the principal amount of $10,000.

Total amount using simple interest formula is:

Where,

A= total amount

P= principal amount  

R=rate of interest

and T = time.

Therefore the $10,000 on simple interest after 10 years will become

Therefore $10,000 on simple interest after 10 years will become $14000.

Now, we have to check for compound interest.

The total amount using compound interest is:

Where n is the compounding interval. Let us assume the amount is compounded annually, therefore n = 1.

Also we have to use the rate in decimal form rather than percentage form.

Therefore the rate becomes

Now substituting the values in the formula we have:

Therefore, $10,000 after compound interest for 10 years becomes $1376.89.

Comparing the total amount of Simple and compound interest, amount earned using simple interest is high

Therefore simple interest will earn him more money.

Hence option 1 is the correct answer

relating to or denoting a system of numbers and arithmetic based on the number ten, tenth parts, and powers of ten.

it alot will look like this 4.4

there has been genes found in the x chromosome of males that have been linked to [homo/hetero]sexuality. in addition to the reign of the x chromosome, a section of chromosome 8 has also been link to, "alot of ppl are so " these facts were proven true after a 2014 study of a gay male and his strait brother. according to newscientist.com,"chromosome 14 and is mainly active in the thyroid, but also the brain. called tshr, it makes a type of receptor protein that recognises and binds to a hormone that stimulates the thyroid. in this way, the gene plays an important role in controlling thyroid function. the fact that tshr seems to be involved in sexual orientation fits with evidence that thyroid function seems to be linked to sexuality."

in conclusion, "ppl are so gay" due to their genetics.