Mathematics: You are given a choice of taking the simple interest on $100,000 invested for 4 years at a rate of 2% or the interest on $100,000 invested for 4 years at an interest rate of 2% compounded quarterly. Which investment earns the greater amount of interest? Give the difference between the amounts of interest earned by the two investments.

You are given a choice of taking the simple interest

Ponypepper5699

29.01.2022

The second type of investment earns greater amount of interest.

Step-by-step explanation:

SI = prt / 100

= 10000 x .02 x 4

= 8000

At compound intetest

A = P(1 + r/n)^nt

= 108307.12

Interest = 108307.12 - 100000 = 8307.12

Difference

8307.12 - 8000 = 307.12

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thibeauxkristy

27.04.2020

23456789

Step-by-step explanation:

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