Answer:
Results are below.
Step-by-step explanation:
Giving the following information:
$175 at 5.45% for 36 months
First, we need to determine the monthly interest:
Monthly interest= 0.0545/12= 0.004542
Now, we will calculate the interest earned using both simple and compound interest:
Simple interest:
I= P*r*t
I= 175*0.004542*36
I= $28.61
Compound interest:
I= PV*(1+i)^n - PV
I= 175*(1.004542^36) - 175
I= $31.01
