6)

For the given principal, interest rate, and time period, determine the amount of interest that would be earned in an account paying simple interest. Also determine the amount of interest that would be earned in an account paying compound interest with interest compounded annually. Determine how much more interest would be earned in the account paying compound interest. Round to the nearest cent.

Principal: $950 Rate: 2% Years: 16

a) $696.15

b) $50.15

c) $43.57

d) $1000.15