Mathematics for IGCSE & O level - Percentages (Section 2 - No. 44)
Find the difference in interest earned by investing $500 for three years at 12% simple interest, or for three years at 10% compound interest.
$28.25
$32.50
$35.00
$36.80
Explanation
Simple Interest: $500 * 0.12 * 3 = $180. Compound Interest: $500 * (1 + 0.10)^3 - $500 = $165.5. Difference = 180-165.5= $14.5
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