Calculating risk premium for $5000 CD investment.

[albibi]

I'm presented with this problem: Mckenna has $5000 to invest in a Certificate of Deposit. Her local bank offers her 6% for a 12 month FDIC insured CD. A nonfinancial institution offers her 8% on a 12 month CD. What is the risk premium?

My simple work is below but I'm unsure whether I should switch the numbers around making the answer in the negatives. Nothing on Google has given me an understandable way of determining which percentage is subtracted from the other.
RP = R – R₁
= 8% - 6%
= 2%

 

[JeffM]

I'm presented with this problem: Mckenna has $5000 to invest in a Certificate of Deposit. Her local bank offers her 6% for a 12 month FDIC insured CD. A nonfinancial institution offers her 8% on a 12 month CD. What is the risk premium?

My simple work is below but I'm unsure whether I should switch the numbers around making the answer in the negatives. Nothing on Google has given me an understandable way of determining which percentage is subtracted from the other.
RP = R – R₁
= 8% - 6%
= 2%

The convention is that the risk premium is considered a positive number; it is how much more you get for accepting the risk.