Question

Monica deposits ​$100 into a savings account that pays a simple interest rate of ​3.3%. Paul deposits ​$200 into a savings account that pays a simple interest rate of ​2.1%. 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

`~~~~~~ \stackrel{\textit{\LARGE Monica}}{\textit{Simple Interest Earned}} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$100\\ r=rate\to 3.3\%\to (3.3)/(100)\dotfill &0.033\\ t=years\dotfill &1 \end{cases} \\\\\\ I = (100)(0.033)(1) \implies I = 3.3 \\\\[-0.35em] ~\dotfill`

`~~~~~~ \stackrel{\textit{\LARGE Paul}}{\textit{Simple Interest Earned}} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$200\\ r=rate\to 2.1\%\to (2.1)/(100)\dotfill &0.021\\ t=years\dotfill &1 \end{cases} \\\\\\ I = (200)(0.021)(1) \implies I = 4.2`

well, Monica needs to check more closely what was in that last cup of coffee she drank, she's hallucinating.