(a)
To prove : After
Given information :
A certificate of deposit of
Formula used:
The amount in simple interest is,
Proof :
The interest on
The amount
Therefore, it is proved that after
(b)
To calculate : The values of two investments for
The amount received in compound interest is more than the amount received in simple interest.
Given information :
A certificate of deposit of
Formula used:
The amount in simple interest is,
The amount in compound interest is,
Calculation :
After
Years | Amount by Simple interest | Amount by compound interest |
Therefore, the amount received in compound interest is more than the amount received in simple interest.
Chapter 3 Solutions
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