SOLUTION: A savings account in the Emigrant Savings Bank in New York now earns 2.25% simple interest a year. Bank One pays 6% interest compounded semiannually on a certificate of deposit. Ro

Question 961376: A savings account in the Emigrant Savings Bank in New York now earns 2.25% simple interest a year. Bank One pays 6% interest compounded semiannually on a certificate of deposit. Robert Wier wants to deposit $1,500 in his savings account, how much additional interest will he earn by placing the money in a certificate of deposit?
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
With simple interest, he will have

after 1 year
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With the CD, after 1 year, he has:

------------------

The CD earns $57.60 more interest than
with simple interest account

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