Question

Monica deposits ​$100 into a savings account that pays a simple interest rate of 3.6​%. Paul deposits ​$200 into a savings account that pays a simple interest rate of ​2.2%. 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

No, Paul will make more money in a year.

Explanation:

Monica: 3.6% · 100 = $3.60 made in a year.

Paul: 2.2% · 200 = $4.4 made in a year.