Question

Monica deposits ​$200 into a savings account that pays a simple interest rate of 3.3​%. Paul deposits ​$300 into a savings account that pays a simple interest rate of ​2.4%. Monica says that she will earn more interest in 1 year because her interest rate is higher. Is she​ correct? Justify your response.

Answer 1

She is not because Paul deposited more money than her, which was enough so that he would earn more interest.

Explanation:

Monica

i = prt

i = 200 * 0.033 * 12

(12 is represented as months)

Multiply.

i = 79.2

Paul

i = prt

i = 300 * 0.024 * 12

(you can choose months or years, but they have to be the same)

Multiply.

i = 86.4

Answer

Monica is wrong because Paul deposited more money than her, which was enough so that he would earn more interest.