The difference between the interest Ben will earn in Account I and the interest Ben will earn in Account II at the end of 2 years is $1.32.
<h3>What is the differnce in the interest?</h3>
Simple interest is when only the amount deposited increases in value.
Simple interest = deposit x interest rate x time
1750 x 0.0275 x 2 = $96.25
Interest earned with compounding = future value - amount deposited.
The formula for calculating future value:
FV = P (1 + r) nm
- FV = Future value
- P = Present value
- R = interest rate
- N = number of years
1750 x (1/0275)^2 = $1847.57
$1847.57 - $1750 = $97.57
Difference in interest; $97.57 - $96.25 = $1.32
To learn more about future value, please check: brainly.com/question/18760477
