a bamk offers two rate of interest. one is 10% p.a. simple interest.,while the other is 9.75% p.a. compounded annually. which scheme will bring more interest on $ 64,000 invested for 2 years and by how much ?
answers are 9.75% and $288.49......
but i want full explanation...
i will mark that person's answer as brainliest and i will follow that person......
i want just full method....
Answers
Answered by
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Answer:
Step-by-step explanation:
For simple interest
Interest = (64000*10*2)/100 = 12800
For Compound Interest
Amount = 64000(1 + 0.0975)²
= 64000(1.0975)²
= 64000 * 1.20450625
= 77,088.4
Interest = Amount - Principal
= 77,088.4 - 64000
= 13088.4
Difference in Interest
= 13088.4 - 12800
= 288.4
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