Answer:
Compound interest =$14.58
Simple Interest=$14.79
Step-by-step explanation:
Let's assume the interest rate charged on the loan was simple in nature.
-Simple interest is calculated using the formula:
[tex]I=PRT,\\\\=1500\times 0.04\times \frac{90}{365}\\\\=14.79[/tex]
Hence, the simple interest on the loan was $14.79
#If the interest is compound in nature with just one compounding per year:
[tex]A=P(1+i)^n\\\\I=A-P\\\\I=1500(1.04)^{90/365}-1500\\\\=14.58[/tex]
Hence, the compound interest charged on the loan is $14.58
