Question

Shania invest 750 as an interest of 2.5% per year. 4
a) Calculate simple interest for 5 years.
b) Calculate compound interest for 5 years.

Answer 1

Hi friend.....

Here's your answer.......

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Simple interest , I = Prt

= 750×(2.5÷100)×5

= 93.75

Compound interest ,A=P{1+(r/100)}^n-750

=750{1+(2.5/100)^5-750 =750(1.025)^5-750

=848.56-750

=98.56