greg invests $2,680 in a cd paying 7.0% interest, and $3,060 in an online savings account paying 4.5%…

greg invests $2,680 in a cd paying 7.0% interest, and $3,060 in an online savings account paying 4.5% interest. how much more interest will the cd have earned than the savings account after 1 year?\na. $25.90\nb. $49.90\nc. $380.00\nd. $499.00\nplease select the best answer from the choices provided\na\nb\nc\nd

greg invests $2,680 in a cd paying 7.0% interest, and $3,060 in an online savings account paying 4.5% interest. how much more interest will the cd have earned than the savings account after 1 year?\na. $25.90\nb. $49.90\nc. $380.00\nd. $499.00\nplease select the best answer from the choices provided\na\nb\nc\nd

Answer

Explanation:

Step1: Calculate CD interest

Use simple - interest formula $I = Prt$. Here, $P = 2680$, $r=0.07$, $t = 1$. So $I_{CD}=2680\times0.07\times1=187.6$.

Step2: Calculate savings account interest

Using $I = Prt$ with $P = 3060$, $r = 0.045$, $t = 1$. So $I_{savings}=3060\times0.045\times1 = 137.7$.

Step3: Find the difference

Subtract the savings - account interest from the CD interest: $I_{difference}=I_{CD}-I_{savings}=187.6 - 137.7=49.9$.

Answer:

B. $49.90$