Question

Sophie could $330 in a savings account at a simple interest rate of 4% per year. Avi put $290 in a savings account at a simple interest rate of 5% per year. Who will have earned more interest after 2 years? How much more?

Answer 1

Sophie would’ve earned more
She would’ve earned $37 more

Calculations:
Sophie:
$330(1+4%*2)
=$356
Simple interest: $356-$330
=$26

Avi:
$290(1+5%*2)
=$319
Simply interest: $319-$290
=$29

$29-$26
=$3