Question

Alistair and Jason both deposited $500 into their bank accounts. Alistair earned 2.5% simple interest per year. Jason earned 4.5% simple interest per year. How much more did Jason receive in interest than Alistair after 4 years?

Answer 1

• $40

Explanation:

The difference in interest amount is:

• $500*4*(4.5 - 2.5)/100 = $40

Jason received $40 more than Alistair