Question

Alex invests $1200 at 3% annual return, and Becky invests $1000 at 5%. After one year, how much more interest does Becky earn than Alex?

Options:

a) $15

b) $20

c) $10

d) $5

Answer 1

Becky earns $14 more interest than Alex.

Step-by-step explanation:

To calculate the difference in interest earned by Becky and Alex, we need to find the interest earned by each of them after one year.

For Alex, the interest earned would be 3% of $1200, which is $36.

For Becky, the interest earned would be 5% of $1000, which is $50.

Therefore, the difference in interest earned by Becky and Alex is $50 - $36 = $14.