Question

FINANCE please answer question six with full working out ty :)

Answer 1

The difference in their value of investments at the end of 3 years will be 105000.  

Step-by-step explanation:

J and L invested 5000  

(P) Principle Amount = 5000  

(r) Rate of interest for J is = 3% per year

(r) Rate of interest for L is = 9% per year

n = 1  

t = 3 years  

Compound Interest formula =  

Finding difference all information is common except rate of interest  

here difference in rate of interest is = 9 - 3 = 6% per year

r = 6% per year

Using the Compound Interest formula -  

A = 5000 (1 + 6/1) 1 × 3

A = 5000 (7) 3

A = 105000  

The difference in their value of investments at the end of 3 years will be 105000.