Question

Erik deposited $3,000 into a savings account that earns 5% simple Interest.

He also deposited $3,000 into a savings account that earns 5% compound interest.

How much is the difference between the account balances after 3 years?

Answer 1

Hey, the answer is 15.375

Explanation:

UsiNg PRT/100, the simple interest of the sum of 3000 naira invested for 3yrs at 5% per annum is 450.

Meanwhile, the first year of the compound interest, the interest generated was 150

second year 157.5

and lastly, third year 157.875

Total interest = 465.375

465.375 - 450 = 15.375

Answer 2

3450 because 5 percent of 3000 Is 150