Question

Darryl deposits $1,500 into a savings account that has a simple interest rate of 2.7%. Lori deposits $1,400 into a savings account that has a simple interest rate of 3.8%. If no other transactions are made, who will have more money in their account after 10 years? How much more? Use the drop-down menus to explain your answer.

Answer 1

Answer:  Lori gets more more in her saving account than Darry has.

Lori has $27 more than Darryl

Step-by-step explanation:

Darry does :

Amount of deposits into a saving account = $1500

Rate of interest = 2.7%

Number of years = 10

As we know the formula for "Simple Interest ",i.e.

$I=\frac{P\times R\times T}{100}$

So, we put the values in this formula to get our answer :

$I=\frac{1500\times 2.7\times 10}{100}\\\\I=\ 405$

As we know how to calculate the "Amount" i.e.

$Amount=Principle+Interest\\\\Amount=1500+405=\ 1905$

Similarly,

Lori does:

Amount of deposits into a saving account = $1400

Rate of interest = 3.8%

Number of years = 10

As we know the formula for "Simple Interest ",i.e.

$I=\frac{P\times R\times T}{100}$

So, we put the values in this formula to get our answer :

$I=\frac{1400\times 3.8\times 10}{100}\\\\I=\ 532$

As we know how to calculate the "Amount" i.e.

$Amount=Principle+Interest\\\\Amount=1400+532=\ 1932$

Hence, Lori gets more more in her saving account than Darry has.

$1932-1905=\ 27$

Lori has $27 more than Darryl .