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## 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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Mathematics
5 months
2021-08-23T11:45:34+00:00
2021-08-23T11:45:34+00:00 1 Answers
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## Answers ( )

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= timeGiven: 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.