Two brothers, Mark and Steven, each inherit $45000

$?45000. Mark invests his inheritance in a savings account with an annual return of 3.2%

3.2%, while Steven invests his inheritance in a CD paying 4.5%

4.5% annually. How much more money than Mark does Steven have after 1

1 year?

$585

Step-by-step explanation

Mark invests his inheritance in a savings account with an annual return of 3.2% 3.2%, while Steven invests his inheritance in a CD paying 4.5% 4.5% annually. How much more money than Mark does Steven have after 1 1 year?

The interest return is annual, and we're comparing investment returns after a single year, so simply multiply each investment principal by the respective interest rate.

Mark's investment return after 1 year:

45000 * 0.032 = $1440

Steven's investment return after 1 year:

45000 * 0.045 = $2025

Steven will therefore have 2025 - 1440 = $585 more than Mark