Question

If you placed $1,000.00 in a savings account with an interest rate of 4.5%/ month versus an account with 3.75%/ month, how much more interest could you earn in that month?
(1 point)
Responses

$1.25 more
$1.25 more

$12.50 more
$12.50 more

$7.50 more
$7.50 more

$75.00 more

Answer 1

Interest difference = $1,000 × (0.045 − 0.0375) = $1,000 × 0.0075 = $7.50.

So you could earn $7.50 more.