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Two brothers, Steven and John, each inherit $32000. Steven invests his inheritance in a savings account with an annual return of 2.1%, while John invests his inheritance in a CD paying 4.3% annually. How much more money than Steven does John have after 1 year?

Respuesta :

TomShelby

Answer:

John owns 704 more dolalrs than Steve after 1 year.

Explanation:

we will compare the yields of each brother:

Steven investment:

[tex]Principal \: (1+ r)^{time} = Amount[/tex]

Principal 32,000

time 1

rate 0.021

[tex]32000 \: (1+ 0.021)^{1} = Amount[/tex]

Amount 32672

John investment:

rate 0.043

[tex]32000 \: (1+ 0.043)^{1} = Amount[/tex]

Amount 33376

Difference: 33.376 - 32,672 = 704

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