SOLUTION: Two brothers, Mark and Charles, each inherit $32000. Mark invests his inheritance in a savings account with an annual return of 2.8%, while Charles invests his inheritance in a CD

Question 1167098: Two brothers, Mark and Charles, each inherit $32000. Mark invests his inheritance in a savings account with an annual return of 2.8%, while Charles invests his inheritance in a CD paying 4.6% annually. How much more money than Mark does Charles have after 1 year?

Answer by dkppathak(439) (Show Source): You can put this solution on YOUR website!
Two brothers, Mark and Charles, each inherit $32000. Mark invests his inheritance in a savings account with an annual return of 2.8%, while Charles invests his inheritance in a CD paying 4.6% annually. How much more money than Mark does Charles have after 1 year?
Solution
Marks investment $3200 interest 2.8% Per annum
Return=3200x0.028=$89.60
Charle invest 3200 at the rate of 4.6%
Charle return=3200x0.046=$147.20 difference=147.20-89.60= $57.60

short cut 4.6-2.8=1.8% difference in return=3200x0.018=$57.60
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