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25 February, 16:57

4. principal = $125

rate = 4%

time = 2 years

simple interest =

compound interest =

+1
Answers (1)
  1. 25 February, 17:14
    0
    Below in bold.

    Step-by-step explanation:

    Simple interest = PRT/100

    = 125 * 4 * 2 / 100

    = $10.

    New amount = $135.

    Compound Interest<

    Amount after 2 years = 124

    = 125 (1 + 0.04) ^2

    = 135.20

    Interest = 135.2 - 125

    = $10.20.

    New amount = $135.20.
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