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A sum of money is deposited in a bank and it earns interest at 5% per annum for 3 years. If the difference between the compound interest, compounded yearly, and the simple interest earned on the sum is $36.60, find the sum.​

 Feb 27, 2021
 #1
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s = sum

simple interest amount =  s * .05 * 3

 

coumpound iterst amount    s [ (1.05)3 -1 ]      difference = 36.60

 

s [1.053 -1]  - s* .05* 3   = 36.60

.157625 s - .15 s

.007625 s = 36.60

s = $ 4800

 Feb 27, 2021

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