Question

Rose and Dennis each open a savings account at the same time. Rose invests $2,600 in an account yielding 4.1% simple interest, and Dennis invests $2200 in an account yielding 5.7% simple interest. After nine years, who has the greater total amount of money, and how much greater is it?

Answer 1

Rose = $2,600 x 0.041 x 9 = $959.40
Total = $2,600 + 959.40 = $3,559.40


Dennis = $2,200 x 0.057 x 9 = $1,128.60
Total = $2,200 + $1,128.60 = $3,328.60


$3,559.40 - $3,328.60 = $230.80

Answer
Rose has greater total amount of money than Dennis.
It's $230.80 greater than Dennis.

Answer 2

Rose has the greater total amount of money. It is $3559.4 - $3328.6 = $230.8 greater.

Explanation:

In simple Interest, the future value (A) is calculated as follows:

A = P*( 1 + r*t )

where:

P is the principal

r is the annual interest rate

t is the number of years between payments

For Rose:

A = 2600*( 1 + 0.041*9 ) = $3559.4

For Dennis:

A = 2200*( 1 + 0.057*9 ) = $3328.6

Rose has the greater total amount of money. It is $3559.4 - $3328.6 = $230.8 greater