Question

Which deposit earns more interest, $250 at 6% per year, or $400 at 4% per year? show how you know.

Answer 1

Answer: 400 at 4% a years


Explanation: if you do 250 times .06 is 6 percent. How? Well, a percentage is per hundred, moving the decimal twice to the left of 6 will give the decimal of 6 percent. So if you multiply .06 times 250 the interest rate is 15 dollars a year and 400 times .04 is 16 dollars a year.

Answer 2

$400 at 4%

Explanation:

which deposit earns more interest, $250 at 6% per year, or $400 at 4% per year? show how you know.

6% of 250 =

250 : 100 * 6 = 15$

4% of 400 =

400 : 100 * 4 = 16$