Step 1: Calculate the interest earned in the first year.

The formula for calculating simple interest is: Principal amount * Interest rate * Time (in years)

So, for the first year, the interest earned would be: $400 * 6/100 * 1 = $24

Step 2: Calculate the total amount at the end of the first year.

The total amount at the end of the first year would be the initial principal plus the interest earned. So, $400 + $24 = $424

Step 3: Calculate the interest earned in the second year.

For the second year, the interest is calculated on the new principal amount (which is the total amount at the end of the first year). So, the interest for the second year would be: $424 * 6/100 * 1 = $25.44

Step 4: Calculate the difference in interest earned between the first and second year.

The difference in interest earned between the first and second year would be: $25.44 - $24 = $1.44

So, $1.44 more interest is earned in the second year than in the first year.

Question

Step 1: Calculate the interest earned in the first year.

The formula for calculating simple interest is: Principal amount * Interest rate * Time (in years)

So, for the first year, the interest earned would be: $400 * 6/100 * 1 = $24

Step 2: Calculate the total amount at the end of the first year.

The total amount at the end of the first year would be the initial principal plus the interest earned. So, $400 + $24 = $424

Step 3: Calculate the interest earned in the second year.

For the second year, the interest is calculated on the new principal amount (which is the total amount at the end of the first year). So, the interest for the second year would be: $424 * 6/100 * 1 = $25.44

Step 4: Calculate the difference in interest earned between the first and second year.

The difference in interest earned between the first and second year would be: $25.44 - $24 = $1.44

So, $1.44 more interest is earned in the second year than in the first year.

Knowee AI · Accepted Answer

Step 1: Calculate the interest earned in the first year.

The formula for calculating simple interest is: Principal amount * Interest rate * Time (in years)

So, for the first year, the interest earned would be: $400 * 6/100 * 1 = $24

Step 2: Calculate the total amount at the end of the first year.

The total amount at the end of the first year would be the initial principal plus the interest earned. So, $400 + $24 = $424

Step 3: Calculate the interest earned in the second year.

For the second year, the interest is calculated on the new principal amount (which is the total amount at the end of the first year). So, the interest for the second year would be: $424 * 6/100 * 1 = $25.44

Step 4: Calculate the difference in interest earned between the first and second year.

The difference in interest earned between the first and second year would be: $25.44 - $24 = $1.44

So, $1.44 more interest is earned in the second year than in the first year.

Sasha placed $400 in an investment that earns an annual interest rate of 6%. If the investment interest is compounded annually, how much more interest is earned in the second year than in the first year?

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