Question

1300 at 6% for seven years

Answer 1

Answer:

In case of compound interest: Final Amount$=1954.72$

In case of simple interest: Final Amount$=1846$

Step-by-step explanation:

If Compound Interest is taken:

$A=P(1+\frac{r}{100})^n\\\\Where\ P:Initial\ Amount, A:Final\ Amount,\ r:interset\ rate\ and\ n:number\ of\ years$

$Here\ P=1300,\ r=6\%,\ n=7\\\\A=1300(1+\frac{6}{100})^7\\\\A=1300(1+0.06)^7\\\\A=1300(1.06)^7\\\\A=1954.72$

If Simple Interest is taken:

$A=P+\frac{P\times r\times n}{100}\\\\Where\ P:Initial\ Amount, A:Final\ Amount,\ r:intereset\ rate\ and\ n:number\ of\ years$

$Here\ P=1300,\ r=6\%,\ n=7\\\\A=1300+\frac{1300\times 6\times 7}{100}\\\\A=1300+546\\\\A=1846$