Question #296734

TK. 10,000 is invest for 4 years at 5% interest. What will be the difference between simple interest and compound interest in the case?


please answer



1
Expert's answer
2022-02-14T17:24:33-0500

Amount, A=P(1+r/100)n=10000(1+5/100)4=$12155.0625A=P(1+r/100)^n=10000(1+5/100)^4=\$12155.0625

Interest =12155.062510000=$2155.0625=12155.0625-10000=\$2155.0625


Simple interest, I=PRT100=10000×5×4100=$2000I=\frac{PRT}{100}=\frac{10000\times 5 \times 4}{100}=\$2000

Difference =2155.06252000=$155.06252155.0625-2000=\$155.0625


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