Question

The graph shows the total amounts in two accounts with the same principal and annual interest rate.

Answer 1

Answer:  (B) about $300

Step-by-step explanation:

At 45 years, the simple interest account (yellow line) is approximately $580 and the compound interest account (blue line) is approximately $880.

The difference between them ($880 - $580) is $300

Answer 2

Answer:

Option (2)

Step-by-step explanation:

In the given graph,

Total amount with interest has been plotted on y-axis and duration of the investment has been plotted on x-axis.

So, at x = 45, value of y = $860 (approximately) for compound interest.

Similarly, for simple interest at x = 45, value of y = $560 (approx.)

So the difference in the total amounts of both the accounts = 860 - 560

= $300

Option (2) will be the answer.