Problem 389
The Investment Problem. Suppose that Rod inverts 
1,000 at 7%(per year) simple interest. In how many years will Rod’s investment be worth more than Sheila’s investment? Complete the following table to answer
Your question (the amount for the first 2 years are given; you may not have to do all 10 years):
| Year | 6% compounded daily | 7% simple |
| 1 |  1,070.00 |
|
| 2 |  1,140.00 |
|
| 3 | ? | ? |
| 4 | ? | ? |
| 5 | ? | ? |
| 6 | ? | ? |
| 7 | ? | ? |
| 8 | ? | ? |
| 9 | ? | ? |
| 10 | ? | ? |
Solution
| Year | 6% compound | 7% simple |
| 1 |  1070.00 |
|
| 2 |  1140.00 |
|
| 3 |  1210.00 |
|
| 4 |  1280.00 |
|
| 5 |  1350.00 |
|
| 6 |  1420.00 |
|
| 7 |
Now from the table we can see after 6 years Rod’s investment will be worth more than Sheila’s.