Asked by nnn

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?

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.

Pat’s fund earned $526.40 more than Sam’s.