Question

Sammie and Joel invest their money with the Grabitall Bank.

Sammie invests £320 in an account that pays 4% simple interest each year.
Joel invests £420 in an account that pays 3% simple interest each year.

a) Who earns the most interest each year? Show your working?

b) How much money will Joel have after 5 years?

Make sure you give the total and not just the interest.

Include workings out.

Answer 1

a) Sammie earns
£320×4% = £12.80
each year.

Joel earns
£420×3% = £12.60
each year.

Sammie earns the most interest.

b) Joel's interest after 5 years is
£12.60×5 = £63
so the total amount of money Joel will have is
£420 +63 = £483