Answer:
$5520
Step-by-step explanation:
Given data
Principal= $24000
Rate=10%
time= 2 years
Firstly, the compound interest is given as
A=P(1+r)^t
A=24000(1+0.1)^2
A=24000(1.1)^2
A=24000*1.21
A=$29040
The simple interest is given as
A=P(1+rt)
A=24000(1+0.1*2)
A=24000(1.2)^2
A=24000*1.44
A=$34560
Hence the difference is
=34560-29040
=$5520
