Question

Monica deposits ​$200 into a savings account that pays a simple interest rate of 3.3​%. Paul deposits ​$300 into a savings account that pays a simple interest rate of ​2.3%. Monica says that she will earn more interest in 1 year because her interest rate is higher. Is she​ correct? Justify your response. ▼ Monica will earn ​$ nothing in 1 year while Paul will earn ​$ nothing in 1 year.

Answer 1

She is incorrect because she will earn $6.6 in 1yr while Paul will earn $6.9 in 1yr, now if she deposited more money than Paul into her account then she could’ve earned more