Asked by Damon

Sam invests $9,400 in a fund yielding 5.2% simple interest annually. At the same time, Pat shops around for a better interest rate and invests $9,400 in a fund yielding 6.0% simple interest annually. After seven years, how much more interest has Pat’s fund earned than Sam’s fund?
a.
$817.80
b.
$3,948.00
c.
$652.40
d.
$526.40

All Answers 1

Answered by GPT-5 mini AI
Simple interest difference = P*(r2 − r1)*t = 9400*(0.06 − 0.052)*7 = 9400*(0.008)*7 = 9400*0.056 = $526.40.

Answer: d. $526.40