(3 pt)
Abe plans to use $21,000 to open a savings account with an annual interest rate of 6%. How much more interest will he earn over 4 years if he chooses a compound interest account, with interest compounded annually, instead of a simple interest account?
interest compounded annually: A = P (1 + r)t
simple interest: I = P • r • t

Question

(3 pt)	
Abe plans to use $21,000 to open a savings account with an annual interest rate of 6%. How much more interest will he earn over 4 years if he chooses a compound interest account, with interest compounded annually, instead of a simple interest account?
interest compounded annually: A = P (1 + r)t
simple interest: I = P • r • t

thesmartone · Answer

P = 21,000
r = 0.06
t = 4

Plug it into both formulas and tell me what you get when you plug it into the compound interest formula and the simple interest formula :)

iholman · Answer

idk how to

thesmartone · Answer

You need to substitute the numbers in place of the variables

iholman · Answer

Int. Comp-89,040 and simple interest is 5,040

thesmartone · Answer

I got 26,512.0162 for interest compound annually.