Option d.$63.61
We will find the compound interests in both scenarios and then subtract them to find the difference.
Case 1:
p = 890
r = 18.7% or 0.187
n = 12
t = 1
Compound interest formula is :
[tex]A=p(1+\frac{r}{n})^{nt}[/tex]
Putting the above values in formula we get,
[tex]A=890(1+\frac{0.187}{12})^{12}[/tex]
= $ 1071.38
Case 2:
p = 890
r = 12.5% or 0.125
n = 12
t = 1
Putting the above values in formula we get,
[tex]A=890(1+\frac{0.125}{12})^{12}[/tex]
= $1007.83
Now, the difference between both values is = [tex]1071.38-1007.83[/tex]
=$63.55 this is closest to option D.
Therefore, option D is the answer.
