Question
Suppose youre an investor who is very flexible in terms of the amount (principal, P) and the time (t) you will be willing to keep
Suppose youre an investor who is very flexible in terms of the amount (principal, P) and the time (t) you will be willing to keep your money in the Bank A, located in the USA. Bank As rates are always at simple interest. How much would be the amount (A) you would have at the end of the period in each of the situations below? Also, calculate the total interest (I) the bank would have paid you when the investment matures: (i) US$ 1,000,000 invested (principal, P) for 3 years (t), at 8% p.a. (r) (ii) US$ 1,250,000 invested (principal, P) for 4 years (t), at 9.5% p.a. (r) (iii) US$ 50,000 invested (principal, P) for 7 years (t), at 6.5% p.a. (r) (iv) US$ 850,000 invested (principal, P) for 3 years (t), at 7.5% p.a. (r) (v) US$ 500,000 invested (principal, P) for 5 years (t), at 5% p.a. (r)
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