Simple and Compound Interest

To make CDs look more attractive than they really are, some banks advertise that their rates are higherthan their competitors’ rates; however, the fine print says that the rate is a simple interest rate. If a person deposits $10,000 at 10% per year simple interest, what compound interest rate would yield the same amount of…

If interest is compounded at 20% per year, how long will it take for $50,000 to accumulate to $86,400? Sample problems and notes are based on the following textbook: Engineering Economy 7th Edition ISBN-13: 978-0073376301 ISBN-10: 0073376302 Edition: 7 Author: Leland Blank, Anthony Tarquin  Published Date: 2011