Compound vs simple interest

Calculate the difference between compound interest and simple interest in USD 7500 in two years at 8% per annum.

Correct answer:

d =  48 USD

Step-by-step explanation:

a=7500 USD  p=8%=1008=252=0.08  r1=1+2 p=1+2 0.08=2529=1.16 r2=(1+p)2=(1+0.08)2=625729=1.1664  A=a r1=7500 1.16=8700 USD B=a r2=7500 1.1664=8748 USD  d=BA=87488700=48 USD



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