Answer:
simple interest=$97.50.
compound interest= $100.668
Explanation:
Given:
Principal (P) = $750
Rate (R) = 6.5% (in decimal form, 0.065)
Time (T) = 2 years
Simple Interest = Principal*Rate*Time
Using the formula, the simple interest is calculated as follows:
Simple Interest = $750*0.065*2 = $97.50
Therefore, the simple interest for $750 with a 6.5% interest rate over 2 years is $97.50.
Again:
Compound Interest = Principal*(1 + Rate)^(Time)-Principal
Using the same values as above, the compound interest can be calculated as follows:
Compound Interest = $750*(1+0.065)^(2)-$750
= $750*1.065^2 -$750
= $750 × 1.134225 - $750
= $850.66875-$750
= $100.668
Therefore, the compound interest for $750 with a 6.5% interest rate over 2 years is $100.668