Imagine that you lend $5,000 to a friend at 7%, and say, "Pay me back when you get a job." Five years later, your friend gets a job and pays you back. Your friend assumed that you meant simple interest, but you had assumed the interest would be compounded annually. What is the difference between the total simple interest and the total compound interest?

Answer rating: 100% (QA)

Okay here are the steps to solve this problem Original loan amount 5000 Interest rate 7 Time pe... View the full answer