WHAT IS THE SUM FOR WHICH 2 YRS SIMPLE INTEREST AND COMPOUND INTEREST DIFFERENCE IS 880 , RATE 4 PER CENT ANN FOR BOTH

Question

owlfred · Answer

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anonymous · Answer

compounded how frequently?

anonymous · Answer

i make it 550,000

anonymous · Answer

let the sum be x.
x(1.04)^2 - x*8 / 100=880
1.0816x - 0.08x = 880
1.0016x = 880
x = $878.60

anonymous · Answer

im not sure though

anonymous · Answer

s1 = p +p x .04 x 2 = 1.08p
s2 = p(1 + r)^2 = 1.04^2 = 1.0816
s2-s1 = 0.0016 = 880
p = 880 / .0016 = 550000

anonymous · Answer

yeah  i added the 1 by mistake...