Question

Darryl deposits $ 1,500.00 into a savings account that has a simple interest rate of 2.7% Lori deposits $ 1,400.00 into a savings account that has a simple interest rate of 3.8% If no other transactions are made whose account will have more money after 10 years?

Answer 1

Daryl

He deposits $1,500 at an interest rate of 2.7%

We now turn the percentage into a decimal 2.7%--->0.027

We multiply $1,500 x
`1.027^(10)` to get 1,957.92

Lori deposits $1,400 at an interest rate of 3.8%

We once again turn the percentage into a decimal 3.8%--->0.038

We multiply $1,400 x
`1.038^(10)` to get 2032.83

Meaning Lori has more at the ned of the 10 years