Answer:
Compound Interest = $2730.06 - $2500 = $230.062 And Simple interest = $225
Step-by-step explanation:
Given as :
The principal = $2500
Rate = 4.5$
Time period = 2 years
From compound Interest method
Amount = Principal [tex](1 +\frac{Rate}{100})^{Time}[/tex]
Amount = $2500 [tex](1 +\frac{4.5}{100})^{2}[/tex]
Amount = $2500(1.045)² = $2730.06
And compound Interest = A - P
Or, Compound Interest = $2730.06 - $2500 = $230.062
Again from Simple Interest method :
SI =[tex]\frac{Principal\times Rate\times Time}{100}[/tex]
or, SI = [tex]\frac{2500\times 4.5\times 2}{100}[/tex]
Or, SI = $225
Hence from given principal ,interest rate and Time period
Compound Interest = $2730.06 - $2500 = $230.062 And Simple interest = $225 Answer
