Question

The graph shows two accounts with the same principal and annual interest rate. Use the graph to estimate the answer to each question.

About how much more compound interest than simple interest is earned after 35 years? Remember to show your work.
About how much more compound interest than simple interest is earned after 45 years? Remember to show your work.

Answer 1

The amount of compound interest than simple interest that is earned after 45 years:

$300 is invested.

After 45 years, it will grow to be about $700.

If invested using compound interest, it will grow to be about 1110.