if you place $2,000.00 in a savings account with an interest rate of 4.5%/month versus an account with a rate of 3.75% month how much more interest could you ear in that month using the first account?

Answer 1

To determine how much more interest you would earn in one month with the two different interest rates, we can calculate the interest earned from each account based on the principal of $2,000.

1. Interest from the first account (4.5% interest rate): \[ \text{Interest} = \text{Principal} \times \text{Rate} \] \[ \text{Interest}_1 = 2000 \times 0.045 = 90 \]

2. Interest from the second account (3.75% interest rate): \[ \text{Interest}_2 = 2000 \times 0.0375 = 75 \]

3. Difference in interest earned: \[ \text{Difference} = \text{Interest}_1 - \text{Interest}_2 = 90 - 75 = 15 \]

So, by placing your $2,000.00 in the account with a 4.5% interest rate instead of the 3.75% interest rate, you would earn $15.00 more in interest in that month.