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28 votes
Two brothers, Brian and John, each inherited $47,000. Brian invest his inheritance in a savings account with an annual return of 3.2%, while John invested his inheritance in a CD paying 6% annually. How much more money than Brian does John have after one year

User Horgh
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1 Answer

7 votes
7 votes
Answer:

John has $1316 more money than Brian after one year

Step-by-step explanation:

Given:

Amount each brother inherited = $47000

The rate on the saving account investment annually = 3.2% = 0.032

The rate of CD investment annually= 6% = 0.06

To find:

The amount of money John has than Brian after year

We will be taking the interest on the investment to be the simple interest

Interest on the savings account = amount inherited × rate

Inteterest on Brian's investment = 47000 × 0.032

Interest in Brian's investment = $1504

Interest on John's investment = 47000 × 0.06

Interest on John's investment = $2820

Difference in interest rate = 2820 - 1504

Difference in interest rate = $1316

John has $1316 more money than Brian after one year

User Kikelomo
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