Easy MEDAL - Bob gets a CD for a year, and it returns $5. Sally invests in stocks for a year, and gets a return of $500. What is the percent difference?

Question

adamaero · Answer

500/5=100
100*100% = 10,000%
?????????????????????????

wolf1728 · Answer

It seems impossible to calculate this.
You are not told the amount either one invests.
You are not told the interest rate.

adamaero · Answer

$10,000. I said the returns for each.

adamaero · Answer

I don't see how the money before the returns is connected to the percent increases BETWEEN the returns.

wolf1728 · Answer

For simple interest:
Total = (1+rate) * 10,000
Bob
(10,005/10,000) = 1+rate 
1.0005 = 1+rate
rate =  = .0005
= .05%

adamaero · Answer

Maybe this is what's confusing you: CD = certificate of deposit.

wolf1728 · Answer

Well, if I'm confused, guess I'll just leave then.  I do know about compound interest but you should phrase your questions a lot better.

adamaero · Answer

This is just about sheer differences expressed as a percent (nothing to do with compounding)