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How much more money than mark does charles have after 1 year?

How much more money than mark does charles have after 1 year?-example-1
User Adnan Mulla
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1 Answer

19 votes
19 votes

Mark's initial amount = $33000

Mark invest's his inheritance amount in savings account with an annual interest of 2.7%; so Mark's interest amount after 1 year is given by:

Interest = principal amount x rate x time

Interest = 33000 x 0.027 x 1

= 891

Therefore, total amount Mark will have after 1 year:

33000 + 891 = $33891

Now, Charles also has $33000 from his inheritance.

Charles invests his inheritance in a CD paying 5.2% annually; therefore, interest amount for Charles after 1 year is:

Interest = principal amount x rate x time

Interest = 33000 x 0.052 x 1

= 1716

Charles's total amount after 1 year:

33000 + 1716 = $34716

Finally, Charles will have $34716 - $33891 = $825 more than Mark.

User Peterwang
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