Question

Hannah and Dawson have both invested money in savings accounts with APYs of 3.2%. If Hannah's account has a balance of $31,000 and Dawson's account has a balance of $42,000, how much more interest does Dawson earn than Hannah?

Answer 1

Answer:

$341.07

Step-by-step explanation:

Hanna and Dawson both invested at 3.2% = 0.032

Hannah has balance of 31,000 in account

Dawson has balance of 42000 in account

Interests earned by both are

1)Hannah -P(1+i)^-n

=31000(1+0.032)^-1

=31000(1.032)^-1

=31000(0.968992)

=$30038.752

=$30038.75

Interest earned by Dawson is $31,000 - $30038.75 = $961.25

2)Dawson-  P(1+i)^-n

=42000(1+0.032)^-1

=42000(1.032)^-1

=42000(0.968992)

=$40697.664

=$$40697.664

Interest earned by Dawson is $42,000 - $40697.66= $1302.32

3) Hence the amount that Dawson earns than is:

=$1302.32-$961.25

= $341.07