If $3,000 is deposited in an account that pays 5% interest what is the difference in the amount after 4 years between the amount earned if the principal is compounded annually in the amount earned calculated using simple interesta. $30.75b. $41.12c. $46.52d. $53.76

If the interest is compounded annually, then
A = P*(1+r/n)^(n*t)
A = 3000*(1+0.05/1)^(1*4)
A = 3646.51875
which rounds to 3646.52
Call this value x, so x = 3646.52

If the interest is compounded using simple interest, then
A = P*(1+r*t)
A = 3000*(1+0.05*4)
A = 3600
Call this value y, so y = 3600

Now subtract x and y
x-y = 3646.52-3600 = 46.52

Therefore the answer is choice C) $46.52