The difference in their value of investments at the end of 3 years will be 105000.
Step-by-step explanation:
J and L invested 5000
(P) Principle Amount = 5000
(r) Rate of interest for J is = 3% per year
(r) Rate of interest for L is = 9% per year
n = 1
t = 3 years
Compound Interest formula =
Finding difference all information is common except rate of interest
here difference in rate of interest is = 9 - 3 = 6% per year
r = 6% per year
Using the Compound Interest formula -
A = 5000 (1 + 6/1) 1 × 3
A = 5000 (7) 3
A = 105000
The difference in their value of investments at the end of 3 years will be 105000.
