If $1500 is deposited in an account that pays 4% interest, what is the difference in the amount after 3 years between the amount earned if the principal is compounded annually and the amount earned calculated using simple interest? A.$3.20 B.$7.30 C.$9.40 D.$15.10

Answer:
Step-by-step explanation:First, converting R percent to r a decimal r = R/100 = 0.04%/100 = 0.0004 per year. Solving our equation: A = 1500(1 + (0.0004 × 3)) = 1501.8  A = $1,501.80 The total amount accrued, principal plus interest, from simple interest on a principal of $1,500.00 at a rate of 0.04% per year for 3 years is $1,501.80.