Solution: Mark's initial amount [tex]=30000[/tex]
Mark invest's his inheritance amount in savings account with an annual interest of 3.1%. Therefore, the Mark's interest amount after 1 year is:
[tex]Interest = Principal-amount \times rate\times time[/tex]
[tex]Interest= 30000 \times 0.031 \times 1[/tex]
[tex]=930[/tex]
Therefore, total amount Mark will have after 1 year [tex]30000+930[/tex]=$30930
Now Charles also has $30000 from his inheritance.
Charles invests his inheritance in a CD paying 5.8% annual.
Therefore, interest amount for Charles after 1 year is:
[tex]Interest = Principal-amount \times rate\times time[/tex]
[tex]Interest= 30000 \times 0.058 \times 1[/tex]
[tex]=1740 [/tex]
Therefore, total amount Charles will have after 1 year [tex]30000+1740[/tex]=$31740
Therefore, Charles will have $31740 - $30930 = $810 more than Mark
