Question

11. You place $4,000.00 in a bank account with an interest rate of 5.25% APR and another $2,000.00 in an account with an interest rate of 6.00% APR. after 6 months, what is the difference in interest that the accounts earn?

Answer 1

$45

Explanation:

I = prt

I = interest earned

p = principal = amount invested

r = interest rate; 5.25% = 5.25/100 = 0.0525

t = time in years; 6 months = 0.5 years

$4,000.00 at 5.25% interest

I = 4000 × 0.0525 × 0.5 = 105

$105 interest in 6 months

$2,000.00 at 6.00% interest

I = 2000 × 0.06 × 0.5 = 60

$60 earned in 6 months

$105 - $60 = $45

The difference is $45.