How much more will $22000 earn in interest than 14,000 if both are invested in savings account with APYs of 5.4% for a year

Question

asked Feb 24, 2020 90.2k views

1 Answer

Garytje · Answer 1 · 2020-03-02T06:45:16+0000

Total = Principal * (1 + rate) ^ year

Total = 22,000 * (1.054)^1 = 23,188.00

Total = 14,000 * (1.054)^1 = 14,756.00

23,188.00 - 22,000 = 1,188.00 interest

14,756.00 - 14,000 = 756.00 interest

So the 22,000 earns (1,188.00 -756.00) = 432.00 more dollars in interest than the 14,000 dollars earns in interest.