Mathematics, 06.10.2019 09:02 sim2004
You invest $600 an an annual rate of 7% for fifteen years. how much more interest would you earn in year 11 with compound vs. simple interest and for the whole 15 years?
Answers: 2
![\bf A=600\left(1+\frac{0.07}{1}\right)^{1\cdot 11}\implies A=600(1.07)^{11}\implies \boxed{A\approx 1262.91} \\\\[-0.35em] ~\dotfill\\\\ ~~~~~~ \textit{Simple Interest Earned Amount \underline{for 15 years}} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$600\\ r=rate\to 7\%\to \frac{7}{100}\dotfill &0.07\\ t=years\dotfill &15 \end{cases}](/tpl/images/0292/9692/fcb04.png)
![\bf A=600(1+0.07\cdot 15)\implies A=600(2.05)\implies \boxed{A=1230} \\\\[-0.35em] ~\dotfill\\\\ ~\hfill \stackrel{\textit{earnings difference}}{1262.91 - 1230\implies 32.91}~\hfill](/tpl/images/0292/9692/04265.png)
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