henry and walter open savings accounts at the same time. henry invests $6,500 at 4.54% simple interest, and…

henry and walter open savings accounts at the same time. henry invests $6,500 at 4.54% simple interest, and walter invests $7,100 at 4.74% simple interest. after eight years, how much more interest has walter earned than henry? a. $331.52 b. $420.67 c. $631.52 d. $719.59 please select the best answer from the choices provided

henry and walter open savings accounts at the same time. henry invests $6,500 at 4.54% simple interest, and walter invests $7,100 at 4.74% simple interest. after eight years, how much more interest has walter earned than henry? a. $331.52 b. $420.67 c. $631.52 d. $719.59 please select the best answer from the choices provided

Answer

Explanation:

Step1: Calculate Henry's interest

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. For Henry, $P = 6500$, $r=0.0454$, and $t = 8$. So, $I_{Henry}=6500\times0.0454\times8$. $I_{Henry}=6500\times0.0454\times8=6500\times0.3632 = 2360.8$.

Step2: Calculate Walter's interest

For Walter, $P = 7100$, $r = 0.0474$, and $t = 8$. So, $I_{Walter}=7100\times0.0474\times8$. $I_{Walter}=7100\times0.0474\times8=7100\times0.3792=2692.32$.

Step3: Find the difference in interest

Subtract Henry's interest from Walter's interest: $I_{difference}=I_{Walter}-I_{Henry}$. $I_{difference}=2692.32 - 2360.8=331.52$.

Answer:

A. $331.52$