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lbvjy [14]
3 years ago
13

Monica deposits ​$400 into a savings account that pays a simple interest rate of 4.4​%. Paul deposits ​$500 into a savings accou

nt that pays a simple interest rate of 3.6​%. Monica says that she will earn more interest in 1 year because her interest rate is higher. Is she​ correct? Justify your response.
Mathematics
1 answer:
DIA [1.3K]3 years ago
8 0

Answer:

From the above calculation it is clear that The interest earn by Monica is less than the The interest earn by Paul , so Monica is wrong

Step-by-step explanation:

Given as :

The principal amount deposited by Monica in account = $ 400

The rate of interest = 4.4 % at simple interest

The time period = 1 years

Let The interest earn by Monica = $ x

<u>From simple interest </u>

Simple Interest = \dfrac{\textrm principal\times \textrm rate\times \textrm time}{100}

Or, $ x = \dfrac{\textrm $ 400\times \textrm 4.4\times \textrm 1}{100}

Or,  x = $ 17.6

So, The interest earn by Monica =  x = $ 17.6

Again

The principal amount deposited by Paul in account = $ 500

The rate of interest = 3.6 % at simple interest

The time period = 1 years

Let The interest earn by Paul = $ y

<u>From simple interest </u>

Simple Interest = \dfrac{\textrm principal\times \textrm rate\times \textrm time}{100}

Or, $ y = \dfrac{\textrm $ 500\times \textrm 3.6\times \textrm 1}{100}

Or,  y = $ 18

So, The interest earn by Paul =  y = $ 18

∴ As The interest earn by Paul > The interest earn by Monica

Hence from the above calculation it is clear that The interest earn by Monica is less than the The interest earn by Paul , so Monica is wrong Answer

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