Beatrice deposit → $50 000
Beatrice interest collected → 2% x $50 000 = $1000
Charlie deposit → $40 000
Charlie interest collected → 3% x $40 000 = $1200
difference → 1200 - 1000 = $200
Charlie earned more by $200
Question 6b
Video explanation ↓Beatrice deposited $50 000 in Bank A which paid her an interest of 2% per year. Charlie deposited $40 000 in Bank B which paid him an interest of 3% per year. Beatrice or Charlie earned more interest at the end of one year and how much more? (2 marks)
Answer: Charlie; $200 more