Question

You place $4,00.00 in the 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% .after 6 months,what is the difference in interest that the account earn

Answer 1

A = P(1 + r)^t

where P is the principal (initial amount invested), r is the interest rate as a decimal, t is time in years, and A is the amount in the bank after (t) years. For each bank, calculate A given the principal, rate, and time (0.5 yrs for both accounts). For each bank, subtract the principal to get the interest only. To find the difference, subtract the two interests.