Question

Two brothers inherited $6000. Brother A puts his investment into savings with annual return of 1.7 % ,while brother B invest into a CD paying 6.2 % annually . How much more does brother A have than Brother B does after 1 year?

Answer 1

Brother B has $270 more than brother A

Step-by-step explanation:

Brother A:

Amount invested × annual return = 6000 × 1.7%

= 6000 × 0.017

=$102

Amount after a year = 6000 + 102= $6102

Brother B:

Amount invested × annual return = 6000 × 6.2%

= 6000 × 0.062

=$372

Amount after a year = 6000 + 372 = $6372

Amount brother A have more than brother B after 1 year:

From the solution, amount brother B has is more than amount brother A has

Difference in amount = $6372 - 6102

Difference in amount = $270

Brother B has $270 more than brother A

Brother A has $270 less than brother B