Question

Mrs.Davis deposits $8,000 into each of 2 savings accounts account 1 earns 6.5% simple interest account 2 earns earns 3% simple interest what’s the difference between the amounts of interest in account 1 and account 2 after 6 years?

Answer 1

$1680

Explanation:

The equation for simple interest is I = PRT, where I = interest earned, P = principal/amount invested, R = rate as a decimal, and T = time in years.

Account 1:

I = (8000)(0.065)(6)

I = $3,120

Account 2:

I = (8000)(0.03)(6)

I = $1,440

$3120 - $1440 = $1680

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