Ametal washer 1-inch in diameter is pierced by a 1/2 - inch hole. what is the volume

If you are saying the washer is 1/8" thick, then its volume is (1/8)(π/4 - π/16) = 3π/128 in^3 

Numerically, the volume is 0.07363 cubic inches

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Interest = 120000 x 6.5 % x 25 = $ 195,000
interest = 120000 x 8 % x 25 = $ 240,000

Difference = $45000