Liam invests $3,670 in a savings account at his local bank which gives 1.9% simple annual interest. He also invests $2,040 in an online savings account which gives 5.5% simple annual interest. After five years, which one will have earned more interest, and how much more interest will it have earned, to the nearest dollar?

Step-by-step explanation:

Given:

Investment P₁ = $3670Investment P₂ = $2040Rate of interest r₁ = 1.9% SIRate of interest r₂ = 5.5% SITime t = 5 years

Find amount of interest in both investments:

I₁ = P₁r₁t = $3670*(1.9/100)*5 = $348.65I₂ = P₂r₂t = $2040*(5.5/100)*5 = $561.00

As we see the online savings account earns more interest and the difference is:

$561.00 - $348.65 = $212.35 ≈ $212

$3,670 in a savings account at his local bank which gives 1.9% simple annual interest. He also invests $2,040 in an online savings account which gives 5.5% simple annual interest. After five years, which one will have earned more interest, and how much more interest will it have earned, to the nearest dollar?

It can be written in two ways: as two equal fractions a/b = c/d; or using a colon, a:b = c:d. The following proportion is read as "twenty is to twenty-five as four is to five." In problems involving proportions, we can use cross products to test whether two ratios are equal and form a proportion.