Question

Help pls-

Bram invested $10,000 in an account that earns simple 5% interest annually.

Question 1: How much interest does the account earn in the first 10 years? (Round to the nearest dollar)

Question 2: How much more would the account earn in interest in the first 10 years if the interest compounded continuously? (Round to the nearest dollar)

Answer 1

Answer 1: $6,289

Answer 2: $198

Explanation:

1-

a(10)=10,000(1+.05)^10

=16,288.95 =16,288-10,000=$6,289

2-

A(t)=pe^rt=a(10)=10,000e^(.05)(10)=16,487-10,000=6487

6487-6289=$198