The interest rate on investments in a bank

Question

The interest rate on investments in a bank decreased from 8 /1 /2 per cent per annum to 6 per cent per annum. The difference in annual interest on a deposit of $2 000 is

Answer 1

Hi Cherrell. 

 

I assume the question relates to an interest rate that decreases from 8.5% to 6% per annum.

 

So, the respective returns are

$2000 * 0.085 = $170

$2000 * 0.06 = $120

 

The difference is $50.

 

I hope that helps.

 

regards,

Mike N.