Firstly , let's calculate for STEVEN
Principal = $20,000
Rate = 3%= 0.03 ( compounded annually)
Time = 10 years
Now the formula for Amount after 10 years will be
where , A is amount after t years , P is the principal i.e. Initial Investment, r= rate of interest , n = number of compounding intervals , t = number of years
n=1 , because compounded annually
So
We can now plug in the calculator for the answer
So A=$26878.33
It means Interest in this case will be
Interest = Amount - Principal = $26,878.33 - $20,000
Interest = $6878.33
Now let's calculate for EVAN
Principal = $10,000
Rate = 7% = 0.07 ( compounded annually , n=1)
Time = 7 years
Let's plug the values
Plug in the calculator
A= $19671.51
Interest = Amount- principal = $19671.51 - $10000
Interest = $9671.51
Now we have to compare the Interest earned by both of them
$9671.51 - $6878.33 = $2793.18
So , Evan earned $2793.18 more interest than Steven