Answer:
$359.42
Explanation:
The difference in the investment values can be computed by making use of the formulas for the account balance in each case.
compound interest: A = P(1 +r)^t . . . . interest at rate r compounded annually
simple interst: A = P(1 +rt) . . . . simple interest at rate r
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The account earning simple interest will have a balance of ...
A = $8000(1 +0.12×3) = $10,880
The account earning compound interest will have a balance of ...
A = $8000(1 +0.12)^3 ≈ $11,239.42
The difference between the two investments is ...
$11,239.42 -10,880 = $359.42