Solved: Investment earning simple interest, Accounting Basics

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Investment earning simple interest

Question: Sunny Shine invested $4,000 at 5% annual interest, and left the money invested without withdrawing any of the interest for 10 years. At the end of the 10 years, Sunny withdrew the accumulated amount of money.

1. What amount did Sunny withdraw assuming the investment earns simple interest?

2. What amount did Sunny withdraw assuming the investment earns interest compound annually?

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Accounting Basics: Investment earning simple interest

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