Question

2,500 dollars of 4.5% of 2 years

Answer 1

Answer:

Compound Interest = $2730.06 - $2500 = $230.062  And Simple interest =  $225

Step-by-step explanation:

Given as :

The principal = $2500

Rate  = 4.5$

Time period = 2 years

From compound Interest method

Amount = Principal $(1 +\frac{Rate}{100})^{Time}$

Amount = $2500 $(1 +\frac{4.5}{100})^{2}$

Amount = $2500(1.045)² = $2730.06

And compound Interest = A - P

Or, Compound Interest = $2730.06 - $2500 = $230.062

Again from Simple Interest method :

SI =$\frac{Principal\times Rate\times Time}{100}$

or, SI =  $\frac{2500\times 4.5\times 2}{100}$

Or, SI = $225

Hence from given principal ,interest rate and Time period

Compound Interest = $2730.06 - $2500 = $230.062  And Simple interest =  $225  Answer