Question

You place $4,000.00 in a bank account with an interest rate of 5.25% APR and another $2,000.00 in an account with an interest rate of 6.00% APR. After 6 months, what is the difference in interest that the accounts earn

Answer 1

The formula you'll use is the compound interest formula
\[\LARGE A = P*\left(1+\frac{r}{n}\right)^{n*t}\]
A = final amount in account after t years
P = amount deposited
r = interest rate
n = compound frequency (how many times you compound interest per year)
t = time in years

Answer 2

keep in mind that t in years

so 6 months = 6/12 = 1/2 = 0.5 years

Answer 3

thanks

Answer 4

no problem