Over time, compound interest at any rate will outperform simple interest. When the rates are nearly equal to start with, compound interest will be greater in very short order. Here, it takes less than 1 year for compound interest to give a larger account balance.
In 30 years, the simple interest will be
... I = P·r·t = 12,000·0.07·30 = 25,200
In 30 years, the compound interest will be
... I = P·(e^(rt) -1) = 12,000·(e^(.068·30) -1) ≈ 80,287.31
_____
6.8% compounded continuously results in more total interest
Answer:
Ohh .........................
Answer:
12.5% increase OR 112.5% Percentage of Change
Step-by-step explanation:
For this problem consider that our original maximum value is 96 square feet, but our new maximum value is 108 square feet. So to find the change as a percentage (in this case the increase) use the following formula:
Percentage of Change = ( New Maximum / Old Maximum ) * 100
So, let's use this formula to find the percentage change of the room.
Percentage of Change = ( 108 / 96 ) * 100
Percentage of Change = (1.125) * 100
Percentage of Change = 112.5
So the percentage of Change is 112.5%. Note, the old maximum is the point of comparison which is 100%.
So to find the increase, we will do 112.5% - 100% to get 12.5%. Hence, we have a 12.5% increase of a 108 square foot room compared to a room of 96 square feet.
Cheers.
