Question

If you placed $1000 in a savings account with an interest rate of 4.5%/ month verses an account with 3.75%/ month, how much more interest could you earn in that month?

A- $1.25 more
B- $12.50 more
C- $7.50 more
D- $75.00 more

Answer 1

A ~ $1.25 ? I think

Answer 2

C - $7.50

REASONING:

If I placed $1,000 in a savings account with an interest rate of 4.5% per month, I would earn $45 in one month.

$1000x.045=$45

If I placed $1,000 in a savings account with an interest rate of 3.75% per month, I would earn $37.50 in one month.

$1000x.0375=$37.50

I would earn an additional $7.50 in one month by placing the money in the savings account with the 4.5% interest rate.

$45-$37.50=$7.50