Question

Two brothers, Mark and Brian, each inherit $37000. Mark invests his inheritance in a savings account with an annual return of 2.4 %, while Brian invests his

inheritance in a CD paying 4.5 % annually. How much more money than Mark does Brian have after 1 year?

Answer 1

After one year, Brian will have $ 777 more than Mark.

Explanation:

Given that both Mark and Brian inherited $ 37000, and Mark invested his inheritance in a savings account with an annual return of 2.4%, while Brian invested his inheritance in a CD paying 4.5% annually, to determine how much more money than Mark does Brian have after 1 year the following calculation must be performed:

(37,000 x 1,045) - (37,000 x 1,024) = X

38.665 - 37.888 = X

777 = X

Thus, after one year, Brian will have $ 777 more than Mark.