You invested $6,500 at 6 percent simple interest. How much more could you have earned over a 10-year period if the interest had compounded annually? Simple Interest = PV + PVrt FV = PV(1 + r) PV = FV/ (1+r) r = (FV/PV) - 1 PV = C/ APR = period rate * number of periods per year 1 (1+r) PV=C Fv - [C+m) -] (1 + r) - 1 EAR - [1 APR 1+ m PR ]