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Answer:
$440
Step-by-step explanation:
Interest=Principal × Rate × Time/100(Formula)
We have to find the Interest.
Interest = $2000× 5.5 × 4/100
100 Interest = 44000
Interest = 44000/100
Interest = $440(Answer)
simple interest
formula = PRT/100
P = 2000$
rate = 5.5%
time = 4 years
= 2000 x 5.5 x 4 / 100
= 440$
amount = S.I. + P
= 2000 + 440
= 2440
compound interest
formula for amount = P( 1 + r/100 )^n
= 2000( 1 + 5.5/100 )^4
= 2000 (100/100 + 5.5/100)^4
= 2000 ( 105.5/100 )^4
2000 x 105.5/100 x 105.5/100 x 105.5/100 x 105.5/100
= 2 x 105.5 x 105.5/10 x 105.5/100 x 105.5/100
= 211 x 105.5/10 x 105.5/100 x 105.5/100
= 2215.5 x 105.5/100 x 105.5/100
= 2,454.22
compound interest = A - P
= 2454.22 - 2000
= 454.22