Question: The difference between the compound interest and simple interest for a deposit made (in year 0) for the following number of years is given below:

The difference between the compound interest and simple interest for a deposit made (in year 0) for the following number of years is given below:

Years Compound interest – Simple interest

2 $42.25

3 $264.66

Estimate the following:

1. The rate of interest

2. The amount of deposit made in year 0

3. The difference in the compound and simple interest at the end of four years

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