Please help me i need it :)
1 answer:
You might be interested in
The amount in simple interest is $3624 and in compound interest is $3674 the difference is of $50. So he should choose Simple interest.
<h3>What is compound and simple interest?</h3>Simple interest is based on the principal amount of a loan or deposit. In contrast, compound interest is based on the principal amount and the interest that accumulates on it in every period.
Here we have the principle is $3000 for 4 years at the rate of interest of 5.2%. Now we will calculate the total amount by simple interest and compounded annually.
By using Simple interest:-
So the total amount will be =3000+624=$3624
By using the Compound interest formula:
The difference between the two amounts will be =3764-3624=$50
Hence amount in simple interest is $3624 and in compound interest is $3674 the difference is of $50. So he should choose Simple interest.
To know more about Compound interest Follow
#SPJ1