Joan Barrett has $10,000 in a savings account which pays 6.5% annual interest. She is thinking about buying ten $1,000 bonds which pay 8% annual interest. How much

more annual interest will the bonds eam than the savings account?

Question

Mathematics

Guest

7 February, 09:59

Joan Barrett has $10,000 in a savings account which pays 6.5% annual interest. She is thinking about buying ten $1,000 bonds which pay 8% annual interest. How much

more annual interest will the bonds eam than the savings account?

+2

Answers (1)

Know the Answer?

Damarion Shaffer · Answer 1

Bonds will earn $150 more than the savings account

Step-by-step explanation:

at 6.5% for $10,000 savings

The interest is 0.065 * 10,000 = $650 interest annually

For the bonds,

0.08 * 10,000 = $800

Bonds will earn $800 - $650 = $150 more than the savings account

Joan Barrett has $10,000 in a savings account which pays 6.5% annual interest. She is thinking about buying ten $1,000 bonds which pay 8% annual interest. How muchmore annual interest will the bonds eam than the savings account?

Joan Barrett has $10,000 in a savings account which pays 6.5% annual interest. She is thinking about buying ten $1,000 bonds which pay 8% annual interest. How much

more annual interest will the bonds eam than the savings account?