Find the simple interest for the period indicated. Then use table values to find the compound interest. Finally, find the
difference between compound interest and simple interest. Round to the nearest cent. (Interest is compounded
annually.)
-Principal: $790 Rate: 6% Years: 16
A)$458.48
B)$392.28
C)$490.08
D)$1,248.48

Question

Find the simple interest for the period indicated. Then use table values to find the compound interest. Finally, find the
difference between compound interest and simple interest. Round to the nearest cent. (Interest is compounded
annually.) 
-Principal: $790 Rate: 6% Years: 16
A)$458.48 
B)$392.28 
C)$490.08 
D)$1,248.48

Quizplus · Accepted Answer

The correct answer is A because the interest is $458.48. The formula for interest is I = P * R * T, where P is the principal, R is the rate, and T is the time. In this case, the principal is $790, the rate is 6%, and the time is 16 years. So, the interest is $790 * 0.06 * 16 = $458.48.

Find the Simple Interest for the Period Indicated