Henry and walter open savings accounts at the same time. henry invests $6,500 at 4.54% simple interest, and walter invests $7,100 at 4.74% simple interest. after eight years, how much more interest has walter earned than henry?

Question

Mathematics

Robert

24 August, 16:07

Henry and walter open savings accounts at the same time. henry invests $6,500 at 4.54% simple interest, and walter invests $7,100 at 4.74% simple interest. after eight years, how much more interest has walter earned than henry?

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Answers (1)

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Marlee Kelley · Answer 1

The interest of money placed into investment that has a simple interest can be calculated through the equation,

I = Prn

Where I is the interest, P is the principal, r is the decimal equivalent of the given rate and n is the number of years.

For Henry,

I = 6,500 x 0.0454 x 8 = 2360.8

For Walter,

I = 7,100 x 0.0474 x 8 = 2692.32

The difference between the calculated interests is 331.52. Thus, after 8 years, Walter will earn $331.52 in interest than Henry.