Question

For compound profit:
a)P=15000
b)n=3years
c)r=9%
1)After three years what is the compound profit?
2)What is the difference between simple profit and compound profit?
Answer should be with step by step explanation.
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Answer 1

Answer:

15000*(1+9/100) 3

15000*109/100*109/100*109/100

15*109/100*109/10

3*109/100*109/2

35643/200

178.215-15000

si=4050

next, find differenrence between si and cu

Answer 2

Amount = 15000(1+0.09)^3
=19424.435
So CI= 19425.435-15000=4425.435
Now SI= 15000*9*3/100=4050
Now difference = 375.435