Two brothers, Mark and Charles, each inherit $31000. Mark invests his inheritance in a savings account with an annual return of

Question

3 years ago

5

2.9%, while Charles invests his inheritance in a CD paying 6.4% annually. How much more money than Mark does Charles have after 1 year?

1 answer:

Nutka1998 [239] · Answer 1 · 2021-11-11T06:20:02+03:00

Answer:

$1,085

Step-by-step explanation:

Data provided in the question:

Amount inherited and invested i.e principle = $31,000

Annual return for Mark on savings account = 2.9% = 0.029

Annual return for Charles on CD = 6.4% = 0.064

Now,

The Interest earned by Mark in 1 year = principle × Rate × Time

= $31,000 × 0.029 × 1

= $899

The Interest earned by Charles in 1 year = principle × Rate × Time

= $31,000 × 0.064 × 1

= $1,984

Therefore,

More Money that Charles have than Mark = $1,984 - $899

= $1,085