The difference in their account balances at the end of 3 years is $24.32
Calculations and Parameters
To solve the compound interest for Cody
First, convert R as a percent to r as a decimal
r = R/100
r = 4/100
r = 0.04 rate per year,
Then solve the equation for A
A = P(1 + r/n)nt
A = 5,000.00(1 + 0.04/1)(1)(3)
A = 5,000.00(1 + 0.04)(3)
A = $5,624.32
To solve for the simple interest for April
P * T * R/100
5000 * 4 * 3/100
= 60,000/100
= 600.
We add the S. I of April's investment
= 5,000 + 600
= $5600.
Therefore, the difference between their account balances is $5,624.32 - $5600 = $24.32
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