Simple Interest - Computer Activity - April 10

Post date: Apr 9, 2013 3:30:36 PM

Consider the following questions. Submit answers via this form by clicking here.

1. How much simple interest would one receive when investing $10 000 at 2.5% annual simple interest for 2 years? Use any tool that you can find.

2. Would you rather invest

OPTION A: $800 at 2% annual simple interest for 5 years

or

OPTION B: $200 at 4% annual simple interest for 5 years

3. Download the spreadsheet below by clicking here.

4. Complete the chart for Example 1 on Handout Finance 2.1. What is the Total Amount at the beginning of year 8 for an investment of $2000 at 7.5% annual simple interest?

5. What type of relationship exists between the Time and the Total Amount?

6. What influence does changing the interest rate have on the slope of the graph?

Figure 1: Screenshot of Spreadsheet