Respuesta :
Answer:
$49.9 more interest will the CD have earned than the online savings account after 1 year .
Step-by-step explanation:
Formula
[tex]Interest = \frac{P\times R\times T}{100}[/tex]
Where P is the principle , R is the rate of interest and T is the time in years .
As given
Greg invests $2,680 in a CD paying 7.0% interest, and $3,060 in an online savings account paying 4.5% interest.
First Part
P = $2680
R = 7.0%
T = 1 years
Put all the values in the formula
[tex]Interest = \frac{2680\times 7.0\times 1}{100}[/tex]
[tex]Interest = \frac{18760}{100}[/tex]
Interest = $187.6
Thus in CD Greg earns $187.6 interest .
Second Part
P = $3060
R = 4.5%
T = 1 years
Put all the values in the formula
[tex]Interest = \frac{3060\times 4.5\times 1}{100}[/tex]
[tex]Interest = \frac{13770}{100}[/tex]
Interest = $137.7
Thus in online saving account Greg earns $137.7 interest .
Thus
More interest earns in CD as compared to online = Interest in CD - Interest in online saving account
= $187.6 - $137.7
= $49.9
Therefore the $49.9 more interest will the CD have earned than the online savings account after 1 year .
