Question

Lindsey invests $250 in a bank account that pays 3% interest each year. How much
money will be in her account after one year?

Answer 1

Answer: Jenns account has the greater simple interest rate

Step-by-step explanation: The formula for simple interest is:

Where A is the final amount after investment, P is the initial amount, r is the rate of interest and t is the time periods.

For Lindsey:

Solve for r

Lindsey simple interest was 1.2% annually

For Jenn:

Jenn simple interest was 1.5% annually

Therefore Jenns account has the highest simple interest rate.