Question

Luke invested $2400 in two accounts. The first account pays 3% simple interest. The second account pays 3% compound interest with interest compounded annually(at the end of each year) After 10 years how much will the second account be worth than the first account?

Answer 1

The first account would be 720 in simple interest and the second account would be 3238.32 so subtracting would give 2518.32 more with than the first account. Comment if you need the full workings