Question

Monica deposits ​$300 into a savings account that pays a simple interest rate of ​%3.3. Paul deposits ​$400 into a savings account that pays a simple interest rate of ​%2.8. 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

Answer: The formula for calculating simple interest is given by :

S.I =

For Monica

S.I = 300 x 3.4 x 1 / 100

S.I = $10.2

For Paul

S.1 = 400 x 2.4 x 1 / 100

S.I = $9.6

Therefore : Monica earned more interest

Explanation: