SOLUTION: How much would be the difference in the total interest in an investment at the end of 8 months: 7% at simple interest or 6% compounded monthly for principal of 100,000?

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Question 1175893: How much would be the difference in the total interest in an investment at the end of 8 months: 7% at simple interest or 6% compounded monthly for principal of 100,000?
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
I=prt=100000*0.07*(2/3)
=$4666.67 for simple interest
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P=Po(1+(.06/12))^8 for compounding monthly,
P=$104070.70,
so interest is $4070.70
$595.97 more with simple interest.