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Question

Monica deposits $300 into a savings account that has a simple intrest rate of 3.4%. Paul deposits $400 into a savings account that has a simple intrest rate of 2.8%. Who earned more in intrest in one year?

Answer 1

For Monica : Principle = $300 rate : 3.4% time 1 yr

Simple interest = Prt/100 = 300*3.4*1/100 = 1020/100= $ 10.2

 

For Paul : Principle = $400 rate : 2.8% time 1 yr
Simple interest = Prt/100 = 400*2.8*1/100 = 1120/100= $ 11.2

 

Hence Paul will earn more interest...