Question

You invest $1,000.00 in one account and $4,000.00 in another account. Both accounts have the same interest rate over the same amount of time. How will the interest earned compare?

Answer 1

The $4,000.00 account will earn 4 times the amount of interest.

Explanation:

$4000 is 4 times $1000, so the interest earned will be 4 times more in the $4000 account as compared to the $1000 account.

1000 x 10% = 100

4000 x 10% = 400

400/100=4