Subjects finance

Simple Interest Difference 884Bb9

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1. **State the problem:** We have two amounts, 14000 and 9000, invested at a simple interest rate of 2.25% per year. We need to find the difference in interest earned after 1 year. 2. **Formula for simple interest:** $$I = P \times r \times t$$ where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate (in decimal), and $t$ is the time in years. 3. **Calculate interest for each investment:** - For $14000$: $$I_1 = 14000 \times 0.0225 \times 1 = 315$$ - For $9000$: $$I_2 = 9000 \times 0.0225 \times 1 = 202.5$$ 4. **Find the difference in interest earned:** $$\text{Difference} = I_1 - I_2 = 315 - 202.5 = 112.5$$ 5. **Answer:** The difference in interest earned after 1 year is $112.5$.