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2 votes
$5000 at 4% interest for 3 years?

User Cowlinator
by
6.7k points

1 Answer

2 votes

Answer:

Simple Interest =$5600 (Principal and Interest)

Compound Interest = $5624.32 (Principal and Interest)

Explanation:

Using Simple interest, use the formulae, Principal X Rate X Time

= 5000*4%*3

= $600 Interest

Principal plus Interest = $5600

Using compound Interest, use the formulae P(1+r)^n

P means Principal

R means rate

N means number of years

= 500(1+4%)^3

= $5624.32 (Principal with Interest)

User SexyMF
by
7.3k points
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