How much more will $34,000 earn in interest than $18,000 if both are invested in savings accounts with APYs of 5.6% for a year?

Question

Stacy Levy

Mathematics

30 May, 14:04

How much more will $34,000 earn in interest than $18,000 if both are invested in savings accounts with APYs of 5.6% for a year?

+1

Answers (1)

Know the Answer?

Elianna Fischer · Answer 1

Is the invested compounded? Daily? Weekly? Monthly, Quarterly, Semi-annually? It will make a difference.

Let's say no the the compounding. The interest earned in the firs year (only the first year) is B (0.056) where B is the initial investment. The two accounts will realize 34000 (0.056) = 1904 and 18000 (0.056) = 1008. I am sure you can take it from here.