Given
P = $6000
R = 6%
Find
Simple interest and compound interest for 5 , 10 and 15 years
Step-by-step explanation
As we know the formula of simple interest and compound interest
First we will find the simple interest for all three years.
Compound interest for 5 years
Compound interest for 30 years
Compound interest for 15 years
Final Answer
(a) Simple interest consistently earned more.
(b) Difference
in 5 years = 229.35
in 15 years = 2979.34
in 30 years = 17660.94
(c) As the time increases difference between simple and compound interest also increases.