Answer:
![\$180.55](https://tex.z-dn.net/?f=%5C%24180.55)
Step-by-step explanation:
step 1
<u><em>Simple interest</em></u>
we know that
The simple interest formula is equal to
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest
t is Number of Time Periods
in this problem we have
substitute in the formula above
![A=\$3,150](https://tex.z-dn.net/?f=A%3D%5C%243%2C150)
step 2
<u><em>Interest compounded annually</em></u>
we know that
The compound interest formula is equal to
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
substitute in the formula above
![A=\$3,330.55](https://tex.z-dn.net/?f=A%3D%5C%243%2C330.55)
step 3
Find the differences between the two final amounts
![A=\$3,330.55-\$3,150=\$180.55](https://tex.z-dn.net/?f=A%3D%5C%243%2C330.55-%5C%243%2C150%3D%5C%24180.55)