Question

Sam invests $9,400 in a fund yielding 5.2% simple interest annually. At the same time, Pat shops around for a better interest rate and invests $9,400 in a fund yielding 6.0% simple interest annually. After seven years, how much more interest has Pat’s fund earned than Sam’s fund?

a.
$817.80
b.
$3,948.00
c.
$652.40
d.
$526.40

Answer 1

D. $526.40.

Explanation:

Edge 2021

Answer 2

Pat's fund earned is $526.40 more than Sam's fund.

Sam's investment :
9400*.052 = 488.80*7 = $3,421.60

Pat's investment :
9400*.06 = 564*7= $3,948.00

$3,948.00-$3,421.60=$562.40

The answer to your question is going to be D. $526.40.

Hope this helps you!!:))