Question 188472
"Find the difference between the simple interest and the compound interest that would be earned from $1,000 invested for 2 years at 5%." 
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Simple interest:
I = Prt = 1000*0.05*2 = $100
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Compound interest:
I = P[(1+0.05)^2 - 1)] 
I = 1000[1.05^2-1]
I = $102.50
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Cheers,
Stan H.