Question

https://www.palmb.New foldersavvasrealize.com/community/dasses/5426a6ac06764 100a82b57e913ca3055/assignments/187be057c46648My District Portal P Performance Matte MackinVIA Reader Ready - Measure L. My District Portal Treefrog TreasureAssignmentfor School: Practice & Problem SolvingIE Question Help3.6.PS.12Monica deposits $400 into a savings account that pays a simple interest rate of 3.6%. Paul deposits$500 into a savings account that pays a simple interest rate of 3.1%. Monica says that she will earnmore interest in 1 year because her interest rate is higher. Is she correct? Justify your response.Monica will earn $in 1 year while Paul will earn $in 1 year

Answer 1

Let us calculate there individual interest to ascertain which is greater .

Monica interest can be computed below

$\begin{gathered} I=\text{prt} \\ \text{where} \\ p=\text{ principal}=\text{ \ 400} \\ r=\text{rate}=\text{ 3.6\%=}\frac{3.6}{100}=0.036 \\ t=\text{time}=1\text{ year} \\ I=400\times0.036\times1=\text{ \ }14.4 \end{gathered}$

Paul's interest can be computed as follows

$\begin{gathered} I=\text{prt} \\ p=\text{ \ 500} \\ r=3.1\text{ \%=}\frac{3.1}{100}=0.031 \\ t=\text{ 1 year} \\ I=500\times0.031\times1=\text{ \ 15.5} \end{gathered}$

Monica is wrong . Paul will earn more interest in 1 year than Monica.