<PRE><B>Question 923615</B>
the per month interest rate is equal to 6% divided by 12 divided by 100 = .005


4 months of simple interest = 4 * .005 * 4000 = 80 dollars.


the compound interest earned is equal to 80.6020025 dollars.


the simple interest can be calcullated in a couple of ways as shown below.


.06 * 4000 * 4/12 = 80


.005 * 4000 * 4 = 80


the compound interest is calculated as shown below:


4000 * (1.005)^4 - 4000 = 80.6020025










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