Question

Lehana and Marty each opened a savings account with adeposit of $50.Lehana earned 2.5% simple interest per year.• Marty earned 2% simple interest per year.How much more did Lehana receive in interest than Martyafter four years?

Answer 1

Given:

Lehana opened a savings account with a deposit of $50 and earned 2.5% simple interest per year.

Marty opened a savings account with a deposit of $50 and earned 2% simple interest per year.

To find:

The interest difference after 4 years.

Step-by-step explanation:

Using the simple interest formula,

`S.I=(Prt)/(100)`

Substituting in the given formula,

`\begin{gathered} P=50 \\ r=2.5 \\ t=4 \end{gathered}`

The simple interest earned by Lehana is,

`\begin{gathered} S.I=(50*2.5*4)/(100) \\ =\text{ \$}5 \end{gathered}`

Substituting in the given formula,

`\begin{gathered} P=50 \\ r=2 \\ t=4 \end{gathered}`

The simple interest earned by Marty is,

`\begin{gathered} S.I=(50*2*4)/(100) \\ =\text{ \$4} \end{gathered}`

Therefore, Lehana receive $1 in interest more than Marty after four years

Final answer:

Lehana will receive $1 in interest more than Marty after four years.