Let us assume the interest to be a simple interest.
S.I = [tex]\frac{p*r*t}{100}[/tex]
Amount invested in CD = 2680
Interest rate = 7% or 0.07
Time = 1 year
So simple interest earned = [tex]2680*0.07*1=187.60[/tex]
Amount invested in online savings account = 3060
Rate of interest = 4.5% or 0.045
Interest earned = [tex]3060*0.045*1=137.70[/tex]
Hence, the difference between both the interests earned =
[tex]187.60-137.70=49.90[/tex]
Hence, option B = $49.90 is the correct answer.
The CD has earned $49.90 more than online savings account.
