## Shani borrowed $5000 at an annual interest rate of 4% compounded yearly. William borrowed the same amount of money at an annual interest rat Question Shani borrowed$5000 at an annual interest rate of 4% compounded yearly. William borrowed the same amount of money at an annual interest rate of 6% compounded yearly. How much more interest will William pay than Shani at the end of 3 years?

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5 months 2021-08-23T11:45:34+00:00 1 Answers 4 views 0

## Answers ( )

1. Answer: William will pay $330.76 more interest than Shani at the end of 3 years. Step-by-step explanation: Compound interest = , P= principal , r= rate of interest , t= time Given: P =$5000 , t= 3 years

For Shani , r= 4% = 0.04

Compound interest =

For William, r= 6%= 0.06

Compound interest =

Difference = $( 955.08- 624.32) =$ 330.76

Hence, William will pay \$ 330.76 more interest than Shani at the end of 3 years.