Question

Kramer just invested $7,200 for 7 years and will earn compound interest of 8.5 percent per year. justin also just invested $7,500 for 7 years and will earn simple interest of 9.5 percent per year. in 7 years, who will have more money and by how much?

Answer 1

Kramer
7,200×(1+0.085)^(7)=12,745

Justin
7,500×(1+0.095×7)=12,488

Kramer will get more by
12,745−12,488=257