Simple Interest versus Compound Interest. First Mark Bank pays 6 percent
simple interest on its savings account balances, whereas First Mullineaux Bank pays
6 percent interest compounded annually. If you made a $5,000 deposit in each bank, how much more money would you earn from your First Mullineaux Bank account at the end of 10 years?
In simple interest the formula is SI=P*R*T=5000*0.06*10=3000. The interest earned under simple ...
The solution explains how to calculate simple interest and compound interest