Answer:
Step-by-step explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the amount invested.
P represents the principal or amount invested.
R represents interest rate
T represents the duration of the investment in years.
From the information given,
P = 10000
R = 4%
In the first year, the simple interest would be
I = (10000 × 4 × 1)/100 = $400
The compound interest in the first year is also $400
In the second year, the simple interest would be
I = (10000 × 4 × 1)/100 = $400
For the compound interest in the second year,
P = 10000 + 400 = $10400
I = (10400 × 4 × 1)/100 = $416
The table would be
Simple interest compound interest
1) 400 400
2). 400 416
Total 800 816
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