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

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

Answer

Explanation:

Step1: Calculate Henry's simple - 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, $P_{H}=6500$, $r_{H}=0.0454$, and $t = 8$. So, $I_{H}=P_{H}r_{H}t=6500\times0.0454\times8$. $I_{H}=6500\times0.0454\times8 = 6500\times0.3632=2360.8$.

Step2: Calculate Walter's simple - interest

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

Step3: Find the difference in interest

The difference $\Delta I=I_{W}-I_{H}$. $\Delta I=2692.32 - 2360.8=331.52$.

Answer:

a. $$331.52$