Question

Monica deposits $400 dollars into a savings account that pays a simple interest rate of 3.4% per deposit five dollars into a savings account that pays a simple interest rate of 3.3% Monica says that she will earn more interest in one year because your interest rate is higher.Is she correct? Justify your response

Answer 1

She is incorrect for people that are asking

Explanation:

Answer 2

Explanation:

Given that:

Deposit A:

Principal (p) = $400

Rate (r) = 3.4% = 0.034

Deposit B:

Principal = $5

Rate (r) = 3.3%

Tbe interest earned by the on an account is directly proportional to :

The size of principal amount , the interest rate and the number of years at which the amount is kept in deposit.

From the above ;

Account which earns more interest among the two is deposit A with a higher rate and a larger principal than B.