Answer:
It is clear that, The Shelly account is $11.23 more than that in Anne account .
Step-by-step explanation:
Given as :
For Anne
The amount deposited in account = p = $500
The rate of interest = r = 6% at simple interest
The time period of deposit = t = 4 years
Let The amount received in account after 4 years = $![A_1](https://tex.z-dn.net/?f=A_1)
<u>From Simple Interest method</u>
Simple Interest = ![\dfrac{\textrm principal\times \textrm rate\times \textrm time}{100}](https://tex.z-dn.net/?f=%5Cdfrac%7B%5Ctextrm%20principal%5Ctimes%20%5Ctextrm%20rate%5Ctimes%20%5Ctextrm%20time%7D%7B100%7D)
Or, s.i = ![\dfrac{\textrm p\times \textrm r\times \textrm t}{100}](https://tex.z-dn.net/?f=%5Cdfrac%7B%5Ctextrm%20p%5Ctimes%20%5Ctextrm%20r%5Ctimes%20%5Ctextrm%20t%7D%7B100%7D)
Or, s.i = ![\dfrac{\textrm 500\times \textrm 6\times \textrm 4}{100}](https://tex.z-dn.net/?f=%5Cdfrac%7B%5Ctextrm%20500%5Ctimes%20%5Ctextrm%206%5Ctimes%20%5Ctextrm%204%7D%7B100%7D)
Or, s.i = ![\dfrac{12000}{100}](https://tex.z-dn.net/?f=%5Cdfrac%7B12000%7D%7B100%7D)
i.e s.i = $120
∵ Amount = Principal + Interest
Or,
= p + s.i
Or
= $500 + $120
Or, Amount = $620
So, The Amount in Anne account after 4 years is $620
Again
For, Shelly
The amount deposited in account = P = $500
The rate of interest = R = 6% compounded annually
The time period of deposit = T = 4 years
Let The amount received in account after 4 years = $![A_2](https://tex.z-dn.net/?f=A_2)
<u>From Compound Interest method</u>
Amount = Principal × ![(1+\dfrac{\textrm rate}{100})^{\textrm time}](https://tex.z-dn.net/?f=%281%2B%5Cdfrac%7B%5Ctextrm%20rate%7D%7B100%7D%29%5E%7B%5Ctextrm%20time%7D)
Or,
= P × ![(1+\dfrac{\textrm R}{100})^{\textrm T}](https://tex.z-dn.net/?f=%281%2B%5Cdfrac%7B%5Ctextrm%20R%7D%7B100%7D%29%5E%7B%5Ctextrm%20T%7D)
Or,
= $500 × ![(1+\dfrac{\textrm 6}{100})^{\textrm 4}](https://tex.z-dn.net/?f=%281%2B%5Cdfrac%7B%5Ctextrm%206%7D%7B100%7D%29%5E%7B%5Ctextrm%204%7D)
Or,
= $500 × ![(1.06)^{4}](https://tex.z-dn.net/?f=%281.06%29%5E%7B4%7D)
Or,
= $500 × 1.26247
Or,
= $631.23
So, The amount received by Shelly in her account after 4 years = $631.23
Now, Difference between amount received in their account
i.e
-
= $631.23 - $620
Or,
-
= $11.23
Hence, It is clear that, The Shelly account is $11.23 more than that in Anne account . Answer