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Tasya [4]
3 years ago
10

Liam invests $3,670 in a savings account at his local bank which gives 1.9% simple annual interest. He also invests $2,040 in an

online savings account which gives 5.5% simple annual interest. After five years, which one will have earned more interest, and how much more interest will it have earned, to the nearest dollar?
Mathematics
1 answer:
IRISSAK [1]3 years ago
7 0

Step-by-step explanation:

<u>Given:</u>

  • Investment P₁ = $3670
  • Investment P₂ = $2040
  • Rate of interest r₁ = 1.9% SI
  • Rate of interest r₂ = 5.5% SI
  • Time t = 5 years

<u>Find amount of interest in both investments:</u>

  • I₁ = P₁r₁t = $3670*(1.9/100)*5 = $348.65
  • I₂ = P₂r₂t = $2040*(5.5/100)*5 = $561.00

<u>As we see the</u><u> online savings account</u><u> earns more interest and the difference is:</u>

  • $561.00 - $348.65 = $212.35 ≈ $212
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