Problem
1. Differentiates between simple interest and compound interest.
2. Assume that you have deposited $1000 in a saving account with Maybank. This account earns you 7% simple interest for 2 years. What is the accumulated interest at the end of 2nd year?
3. Assume that you have deposited $1000 in a saving account with Citibank.This account earns you 5% compound interest for 2 years. What is the accumulated interest at the end of 2nd year?
4. Raymond took a 2 years loan $2,500 from Public Bank to buy computer. The bank charged him simple interest at 9% per year. What is the maturity value at the end of the loan period?