Question

What would be the difference in interest received from an investment of $750 from an account paying 4% simple interest per annum and an account paying 0.3% monthly compound interest, over a one-year period? and which account paid the most interest

Answer 1

The difference in interest received from an investment of $750 from an account paying 4% simple interest per annum and an account paying 0.3% monthly compound interest, over a one-year period is $19.75. The account paying 0.3% monthly compound interest will pay the most interest, yielding $102.50 in total.