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over 2 years how much more will a savings account with a simple interest rate of 5.3% yield in earnings than a savings account with a simple interest rate of 2.4% if the original balance of both accounts is 7,200

over 2 years how much more will a savings account with a simple interest rate of 53 yield in earnings than a savings account with a simple interest rate of 24 i class=

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sqdancefan

Answer:

  0417.60

Step-by-step explanation:

The straightforward way to work this problem is to compute the interest on both accounts and find the difference. I find it easier to consider the difference in rates and compute the interest difference that way.

The difference in interest rates is 5.3% -2.4% = 2.9%. Then the difference in interest will be found using the interest formula:

  I = Prt . . . . P=principal, r=interest rate(difference), t=years

  I = (7200)(0.029)(2) = 7200(0.058) = 417.60

The higher yield account will earn 417.60 more than the lower-yield account over 2 years.

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