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Tomtit [17]
2 years ago
5

If $3,000 is deposited in an account that pays 5% interest what is the difference in the amount after 4 years between the amount

earned if the principal is compounded annually in the amount earned calculated using simple interest
A. $30.75
B. $41.12
C. $46.52
D. $53.76
Mathematics
2 answers:
Blizzard [7]2 years ago
5 0
C Is the answer to the question
velikii [3]2 years ago
4 0
If the interest is compounded annually, then
A = P*(1+r/n)^(n*t)
A = 3000*(1+0.05/1)^(1*4)
A = 3646.51875
which rounds to 3646.52
Call this value x, so x = 3646.52
-----------------------------------
If the interest is compounded using simple interest, then
A = P*(1+r*t)
A = 3000*(1+0.05*4)
A = 3600
Call this value y, so y = 3600
-----------------------------------
Now subtract x and y
x-y = 3646.52-3600 = 46.52
-----------------------------------
Therefore the answer is choice C) $46.52


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