Answer:
In case of compound interest: Final Amount[tex]=1954.72[/tex]
In case of simple interest: Final Amount[tex]=1846[/tex]
Step-by-step explanation:
If Compound Interest is taken:
[tex]A=P(1+\frac{r}{100})^n\\\\Where\ P:Initial\ Amount, A:Final\ Amount,\ r:interset\ rate\ and\ n:number\ of\ years[/tex]
[tex]Here\ P=1300,\ r=6\%,\ n=7\\\\A=1300(1+\frac{6}{100})^7\\\\A=1300(1+0.06)^7\\\\A=1300(1.06)^7\\\\A=1954.72[/tex]
If Simple Interest is taken:
[tex]A=P+\frac{P\times r\times n}{100}\\\\Where\ P:Initial\ Amount, A:Final\ Amount,\ r:intereset\ rate\ and\ n:number\ of\ years[/tex]
[tex]Here\ P=1300,\ r=6\%,\ n=7\\\\A=1300+\frac{1300\times 6\times 7}{100}\\\\A=1300+546\\\\A=1846[/tex]
