Travis invested $9,250 in an account that pays 6 percent simple interest.How much more could he have earned over a 7-year period if the interest had compounded annually?
A)$741.41
B)$773.58
C)$802.16
D)$833.33
E)$858.09

Question

Quizplus · Accepted Answer

Simple interest = $9,250 + ($9,250 × .06 × 7) = $13,135Compound interest = $9,250 × (1 + .06)⁷ = $13,908.58Difference = $13,908.58 - $13,135 = $773.58

Travis Invested $9,250 in an Account That Pays 6 Percent