Elmore pays first national bank $1,000 plus a service fee to draw a check on itself made payable to go delivery service. this is
1 answer:
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Answer:
$4,900 (From simple interest method)
Explanation:
Given:
Amount invested (p) = $4,000
Interest rate for simple interest (r) = 4.5% = 4.5/100 = 0.045
Interest rate for Compound interest (i) = 4%
Number of year (t) = 5
Computation of amount from simple interest method:
Amount = p(1+rt)
Amount = $4,000[1+(0.045 × 5)]
Amount = $4,000[1+0.225]
Amount = $4,000[1.225]
Amount (from simple interest method) = $4,900
Computation of amount from compound interest method:
Therefore, Amount from simple interest method is higher .