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: $5,929 Rate: 5% Years: 14
A)$1,659.70
B)$3,438.41
C)$1,397.16
D)$7,588.71

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: $5,929 Rate: 5% Years: 14
A)$1,659.70 
B)$3,438.41 
C)$1,397.16 
D)$7,588.71

Quizplus · Accepted Answer

The interest can be calculated using the formula for simple interest: I = PRT, where P is the principal ($5,929), R is the rate (5% or 0.05), and T is the time in years (14). Thus, I = $5,929 * 0.05 * 14 = $4,150.30. However, none of the options match this calculation directly, indicating a possible misunderstanding in the calculation or the nature of the question as it was presented. Given the options, none directly match the expected calculation for simple interest based on the provided formula and values.

Find the Simple Interest for the Period Indicated