Samantha D.
asked • 02/26/19Math 1105 ocllege algebra help
Two brothers, Brian and Charles, each inherit $4500 . Brian invests his inheritance in a savings account with an annual return of 3%, while Charles invests his inheritance in a CD paying 6.3% annually. How much more money than Brian does Charles have after 1 year?
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1 Expert Answer
Hi Samantha
My name is Brenda D
Two brothers, Brian and Charles, each inherit $4500 . Brian invests his inheritance in a savings account with an annual return of 3%, while Charles invests his inheritance in a CD paying 6.3% annually. How much more money than Brian does Charles have after 1 year?
This is just the difference between the simple interest each will earn in a year.
Interest = Principal x rate x time
Principal for both is $4500
Rate for Brian is 3% or .03
Time for both is 1 year
Interest for Brian = $4500 x .03 x 1
Interest for Brian = $135
Rate for Charles is 6.3% or .063
Interest for Charles = $4500 x .063 x 1
Interest for Charles = $283.50
283.50 – 135 = 148.50
Subtracting their Balances at the end of one year yields the same
Balance for Charles is $4783.50
Balance for Brian is $4635.00
$478350 – 4635.00 = 148.50
Charles will have $148.50 more than Brian.
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Andriana F.
2 parts, find what Brian earns, then what charles earns, and subtract the difference. Model is I=prt. where I= interest (so how much earned), p= principal (or the "initial" amount which is $4500, r=rate, which is .03 for brian and .063 for charles (you'll need two equations), and t-time, which is 12, for 12 months or one year. So two equations would look like I=(4500)(.03)(12) and I= (4500)(.063)(12), and find the difference. Because they are both starting with the same principal, or same initial amount, no need to incorporate that part into finding the difference, just subrtract the greater I amount from the lesser I amount02/26/19