3 years ago

$668 at 9.25% for 5 years

Mathematics

1 answer:

madreJ [45]3 years ago

8 0

Answer:

$21.17

Step-by-step explanation:

Simple Interest=P(1+r)^t

Compounded Interest=P(e^rt)

SI=668*(1.0925)^5

SI=1039.64

CI=668(e^(0.0925*5))

CI=1060.81

1060.81-1039.64=21.17

So the difference is $21.17, thus doing compounded interest is better.

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