Part+three



**Part three: Simple interest and compound interest problem** Simple interest Formula: =A1+30 Balance after 10 years: $900.00 Interest compounded annually at 5% Formula: =B1*1.05 Balance after 10 years: $977.34 Interest compounded annually at 10% Formula: =F1*(1+E1) Balance after 10 years: $1556.25 A 10% interest rate yielded a 59% increase in return over a 5% interest rate. Interest compounded monthly at 5% Formula: =C1*(1+(0.05/12))^12 Balance after 10 years: $988.21 