Calculation $10,000 x 6% = $10,000 x 6% = $10,000 x 6% = $10,000 x 6% = $10,000 x 6% = Total Interest Simple Interest $600 $600 $600 $600 $600 $3,000 5 Compound Interest Calculation Compound interest means interest is calculated on the principal and on all interest earned to date Compound Interest Year Compound Interest Calculation 1 2 3 4 5 $10,000 x 6% = ($10,000 + 600) x 6% = ($10,000 + 600 + 636) x 6% = ($10,000 + 600 + 636 + 674) x 6% = ($10,000 + 600 + 636 + 674 + 715) x 6% = Total Interest…
Words 2251 - Pages 10