Homework Answers
Simple interest=Principal*Interest rate*time period
=10,000*3%*5=$1500
For compound interest:
We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
A=10,000*(1.03)^5
=11592.74
Hence interest=A-P
=11592.74-10,000
=$1592.74(Approx)
Hence the statement is True.
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