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Hello, I need some assistance with this question. I appreciate your help.

Here it is:

The graph shows two accounts with the same principal and annual interest rate. Use the graph to estimate the answer to each question.

About how much more compound interest than simple interest is earned after 35 years? Remember to show your work.

About how much more compound interest than simple interest is earned after 45 years? Remember to show your work.

 Apr 23, 2019
 #1
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At the beginning $300 is invested.

If it is invested using simple interest then after 35 years it will grow to about $610    (I read that off the graph)    [that is $300 + $310 in interest]

If it is invested using scompound interest then after 35 years it will grow to about $870           [that is $300 + $570 in interest]

 

870- 610 =  $260               (this is also the same as 570-310)

So the compound interest investment grows $260 more than the simple interest one.

 

 

You can do the second one yourself.

 Apr 23, 2019

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