Greg invests $2,680 in a CD playing 7.0% interest, and $3,060 in an online savings account paying 4.5% interest. How much more interest will the CD have earned than the savings account after 1 year? A.$25.90 B. $49.90 C. $380.00 D.$499.00

Question

Donovan Orozco

Mathematics

29 September, 19:30

Greg invests $2,680 in a CD playing 7.0% interest, and $3,060 in an online savings account paying 4.5% interest. How much more interest will the CD have earned than the savings account after 1 year? A.$25.90 B. $49.90 C. $380.00 D.$499.00

+1

Answers (1)

Know the Answer?

Hansen · Answer 1

The CD have earned $49.9 interest more than the savings account after 1 year. This problem can be solved assuming that both of the investment and the saving give an annual interest and then we can calculate each of the interest by multiplying the percentage and the principal amount (187.6 = 7%*$2680 and 137.7 = 4.5%*3060). The difference can be acquired by subtracting both of the interest amounts (49.9 = 187.6 - 137.7)