SOLUTION: "Find the difference between the simple interest and the compound interest that would be earned from $1,000 invested for 2 years at 5{{{1/2}}}%." Please show your work so I can

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: "Find the difference between the simple interest and the compound interest that would be earned from $1,000 invested for 2 years at 5{{{1/2}}}%." Please show your work so I can       Log On

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Question 187936: "Find the difference between the simple interest and the compound interest that would be earned from $1,000 invested for 2 years at 51%2F2%."
Please show your work so I can understand. I dont know how to solve this problem and I've been stuck on it for a while so please help me if you can.
Thank you
Answer by checkley77(12844) About Me  (Show Source):
You can put this solution on YOUR website!
1,000(1+.055)^2
1,000(1.055)^2
1,000*1.113=$1,113.03 amount of the investment after 2 years.