(Answered) Question - simple and compound interest computations

Accounting

Question - Simple and Compound Interest Computations - Alan Jackson invests $20,000 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Alan withdraws the accumulated amount of money.

Instructions -

(a) Compute the amount Alan would withdraw assuming the investment earns simple interest.

(b) Compute the amount Alan would withdraw assuming the investment earns interest compounded annually.

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