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Assuming the investment earns simple interest

Question:

Randy Owen invested $8,000 at 5% annual interest, and left the money invested without withdrawing any of the interest for 12 years. At the end of the 12 years, Randy withdrew the accumulated amount of money.

(a) What amount did Randy withdraw, assuming the investment earns simple interest?

(b) What amount did Randy withdraw, assuming the investment earns interest compounded annually?

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Accounting Basics: Assuming the investment earns simple interest

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