Two brothers, Tom and Allen, each inherit $39000. Tom invests his inheritance in a savings account with an annual return of 2.9%

Question

4 years ago

10

, while Allen invests his inheritance in a CD paying 5.7% annually. How much more money than Tom does Allen have after 1 year?

1 answer:

Ugo [173] · Answer 1 · 2021-12-11T13:00:06+03:00

Ugo [173]4 years ago

5 0

Answer:

Tom:

initial money = $ 39000

% increased per annum = 2.9%

money gained per annum = 39000 * 2.9/100 = $1131

Allen:

initial money = $ 39000

% increased per annum = 5.7 %

money gained per annum = 39000 * 5.7/100 = $2223

Allen has $ (2223 - 1131) = $ 1192 more than Tom