Question

The graph shows the total amounts in two accounts with the same principal and annual interest rate.

After 45 years, how much did the account with compound interest earn than the account with simple interest?

Answer 1

$300

Explanation:

took the test

Answer 2

Option (2)

Explanation:

In the given graph,

Total amount with interest has been plotted on y-axis and duration of the investment has been plotted on x-axis.

So, at x = 45, value of y = $860 (approximately) for compound interest.

Similarly, for simple interest at x = 45, value of y = $560 (approx.)

So the difference in the total amounts of both the accounts = 860 - 560

= $300

Option (2) will be the answer.