Comparing Simple and Compound Interest
Unlock all 20 questions & worked solutions
You're viewing a free preview. Create an account to access the complete question set, step-by-step solutions, and progress tracking.
All Questions
Access the full question set for every topic.
Worked Solutions
Step-by-step explanations for every answer.
Track Progress
Mark questions right or wrong and monitor your growth.
It's Free
No credit card required - sign up in under a minute.
Lily invests \(\$4000\) at \(5\%\) p.a. compounded annually. Each year the interest is simple interest for one year on the balance at the start of that year, and it is added to the balance.
| Year | Start balance | Interest (\(5\%\)) | End balance |
|---|---|---|---|
| \(1\) | \(\$4000\) | ||
| \(2\) | |||
| \(3\) |
(i) Complete the table to find the balance at the end of each year.
(ii) Show that \(4000\times 1.05^{3}\) gives the same balance after \(3\) years.
📚 Want More Questions?
There are 19 more questions available. Create your free account to access the complete question set with detailed solutions.