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Alex73 [517]
4 years ago
10

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

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

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