Answer:
Total interest =$1296
Step-by-step explanation:
Kevin invested $8,000 for one year at a simple annual interest rate of 6 percent
Simple interest = [tex]\frac{Pnr}{100}[/tex]
P=8000, n=1 year and r=6
interest = [tex]\frac{8000(1)(6)}{100}[/tex]
Interest = 480 dollars
[tex]compound \ interest =P(1+\frac{r}{n} )^{nt}-p[/tex]
P= 10000, t=1, r=8%=0.08, n=2 for semiannually
[tex]compound \ interest =10000(1+\frac{0.08}{2} )^{2(1)}-10000[/tex]
Interest = 10816- 10000=816
Total interest = [tex]480+816=1296[/tex]
