alex invests $200 for 2 years at a rate of 2% per year simple interest
christ invests $200 for 2 years at a rate of 2% per year compound interest
calculate how much more interest christ has then alex
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S I
P = $200
T = 2 years
R = 2%
SI = P * R * T /100
SI = $200 * 2* 2 / 100
SI = $8
Compound interest
P= $200
R= 2 %
T = 2 years
Amount = P(1+R/100) ^ T
A = $200 ( 1+ 2/100) ^ 2
= $200 * (102/100)^2
= 200 * 10404 /10000
= $208.08
CI = A-P
208.08 -200
$ 8.08
So total extra money to be paid
CI - SI
8.08 - 8 = $0.8
$0.8 have to be paid more if took compound interest
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