jared is planning to deposit $750 in a saving...
jared is planning to deposit $750 in a savings account. the table compares two different banks in which he can open his savings account. bank interest rates bank name simple interest rate state savings 3.25% countywide bank 2.75% how much more interest will jared earn at state savings than countywide bank if he places the money in a savings account for 6 years? (round your answer to the nearest hundredth) interest $
Answer
# Explanation:
## Step1: Calculate interest at State Savings
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 State Savings, $P=\$750$, $r = 0.0325$ (since $3.25\%=0.0325$), and $t = 6$ years. So, $I_{1}=750\times0.0325\times6$.
$I_{1}=750\times0.0325\times6 = 750\times0.195=\$146.25$.
## Step2: Calculate interest at Countywide Bank
For Countywide Bank, $P = 750$, $r=0.0275$ (since $2.75\% = 0.0275$), and $t = 6$ years. So, $I_{2}=750\times0.0275\times6$.
$I_{2}=750\times0.0275\times6=750\times0.165 = \$123.75$.
## Step3: Find the difference in interest
The difference $\Delta I=I_{1}-I_{2}$.
$\Delta I=146.25 - 123.75=\$22.50$.
# Answer:
$22.50$