Sam invests $9,400 in a fund yielding 5.2% simple interest annually. at the same time, pat shops around for a better interest rate and invests $9,400 in a fund yielding 6.0% simple interest annually. after seven years, how much more interest has pat’s fund earned than sam’s fund? a. $817.80 b. $3,948.00 c. $652.40 d. $526.40

Pat´s fund earned $526.40(d) more than Sam´s fund.

Step-by-step explanation:

Hi, to solve this problem we have to analyze the information given:

Principal amount: $9,400

Interest rate (r): 5.2% = 0.052 (Sam); 6.0% = 0.06 (Pat)

Time (t): 7 years

We have to apply the simple interest formula for each one, to obtain the Total Accrued Amount (principal + interest) (A) that each one gets after 7 years.

A = P (1 + rt)

Now, we have o subtract Sam´s amount to Pat´s amount to obtain the difference (D).

D = 13,348 -12,821.6=526.4

Pat´s fund earned $526.40(d) more than Sam´s fund.

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