An amount $4,000 is invested today and another $10,000 invested four years from now. If both of them earn a simple interest of 10%, the interest accrued at the end of 5 years is $1,400

Question

Quizplus · Accepted Answer

The interest on the $4,000 investment for 5 years is $2,000, and the interest on the $10,000 investment for 1 year is $1,000, totaling $3,000, not $1,400.

An Amount $4,000 Is Invested Today and Another $10,000 Invested