SOLUTION: Calculate the difference of interest and compound interest for $ 5,000 at the rate of 5 % per annum for three years.

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Question 439444: Calculate the difference of interest and compound interest for $ 5,000 at the rate of 5 % per annum for three years.
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
Calculate the difference of interest and compound interest
for $ 5,000 at the rate of 5 % per annum for three years.
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Simple Interest:
I = Prt
I = 5000*0.05*3
I = $750
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Compound Interest:
I = P[(1+(r/n))^(nt) -1]
I = 5000[1+(0.05/1)]^(1*3) - 1]
I = 5000[1.05]^3 -1]
I = 5000[0.1576]
I = $788.13
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Cheers,
Stan H.
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