Question

How much more will 34,000 earn in interest than 18,000 if both are invested in savings accounts with APYs of 5.6% for a year?

Answer 1

Answer:

Amount of $34000 will earn $896 more interest as compared to the amount of $18000.

Step-by-step explanation:

We know that,

$i=\dfrac{Prt}{100}$

where,

i = interest,

P = principle,

r = rate of interest,

t = time period.

For principle amount of $34,000,

$i_1=\dfrac{34000\times 5.6\times 1}{100}=\ 1904$

For principle amount of $18,000,

$i_2=\dfrac{18000\times 5.6\times 1}{100}=\ 1008$

So the difference between the interest is,

$i_1-i_2=1904-1008=\ 896$

Therefore, amount of $34000 will earn $896 more interest as compared to the amount of $18000.