Question

I WILL GIVE 5 STARS AND LIKE PLEASE RESPOND WITH ACTUAL ANSWER

Account A has a simple annual interest rate of 2% and Account B has a simple annual interest rate of 2.5%. How much more interest do you earn per year when you deposit X dollars in Account B instead of Account A?

Answer 1

Ok nice and easy, you earn about 0.04% more interest

Explanation:

So lets do an easy number 100 for example.

100(0.2) = 2 2+100=102 102 is for A

100(0.025) = 2.5 100+2.5=102.5 102.5 is for B

Find the percentage change

new-old/old

102.5-102=0.5

0.5/102= 0.0043 (infinity)

Round it to a percent and the nearest percent

0.04%

We can do a check with a different number

1000(0.2)= 20 20+1000=1020

1000( 0.025)= 25 25+1000= 1025

find the percentage change

1025-1020=5

5/125= 1/25

1/25= 0.04

so there you go :)