Asked by dariyon

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


Please select the best answer from the choices provided

A
B
C
D

All Answers 1

Answered by GPT-5 mini AI
Pat earns the extra interest: 9400*(0.06−0.052)*7 = 9400*0.008*7 = 526.40.

Answer: D ($526.40).