Principal $8783 Rate 3% Years 13

Question

for the given principal interest rate and time period determine the amount of interest that would be earned in an account paying simple interest. also determine the amount of interest that would be earned in an account paying compound interest with interest compounded annually. determine how much more interest would be earned in the account paying compounded interest. round to the nearest cent

A)$577.58 B)$6047.39 C)$9472.76 D)$689.76

Answer 1

simple interest = $3789 = .03x13x8783

compound interest =8783(1.03)^13 - 8783 =17536

compounding annually give 17,536 -3789 = $13,747 more