Question

Greg invests $2,680 in a CD paying 7.0% interest, and $3,060 in an online savings account paying 4.5% interest. How much more interest will the CD have earned than the savings account after 1 year?

Answer 1

$49.9 more interest

2680x1.07=2867.6
3069x1.045=3197.7

2867.60-2680=187.6
3197.7-3069=137.7

187.6-137.7=49.9

Answer 2

Answer:

$49.9  more interest will the CD have earned than the online savings account after 1 year .

Step-by-step explanation:

Formula

$Interest = \frac{P\times R\times T}{100}$

Where P is the principle , R is the rate of interest and T is the time in years .

As given

Greg invests $2,680 in a CD paying 7.0% interest, and $3,060 in an online savings account paying 4.5% interest.

First Part

P = $2680

R = 7.0%

T = 1 years

Put all the values in the formula

$Interest = \frac{2680\times 7.0\times 1}{100}$

$Interest = \frac{18760}{100}$

Interest = $187.6

Thus in CD Greg earns $187.6 interest .

Second Part

P = $3060

R = 4.5%

T = 1 years

Put all the values in the formula

$Interest = \frac{3060\times 4.5\times 1}{100}$

$Interest = \frac{13770}{100}$

Interest = $137.7

Thus in online saving account Greg earns $137.7 interest .

Thus

More interest earns in CD as compared to online = Interest in CD - Interest in online saving account

                                                                                  = $187.6 - $137.7

                                                                                  = $49.9

Therefore the $49.9  more interest will the CD have earned than the online savings account after 1 year .