Question

Monica deposits $100 into a savings account that pays a simple interest rate of 3.8%. Paul

deposits $200 into a savings account that pays a simple interest rate of 2.5%. 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

3.3

multiply all the number in pairs then you have to add both number 3.3

Answer 2

Paul

Explanation:

Paul earn more than monica. Though he is getting less interest but because of his higher initial amount he is getting more return.

Computing the return of both

Monica return is 100*3.4%= $3.4 in a year

Paul return is 200*%2.2= $4.4 in a year.