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How much more did compounding earn Abena than simple interest?
A$8.46
B$6.48
C$4.68
D$4.86
Answer & Solution
Correct answer: D. $4.86
1. The compound value was $1,124.86.
2. The simple value would have been $1,120.00.
3. The difference is $4.86.
_Source: OpenStax, Contemporary Mathematics, Ch 6 'Money Management'_
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