Theodore earned $ in interest after 4 years on a principal of $440. His simple interest rate is 4.2%. Bella earned $216 in i

Question

3 years ago

15

Theodore earned $ in interest after 4 years on a principal of $440. His simple interest rate is 4.2%. Bella earned $216 in i

nterest after 4 years on a principal of $1500 . Bella Her simple interest rate is 3.6%. Which bank would you rather use, Theodore's or Bella's? Explain your reasoning.

Mathematics

1 answer:

vlada-n [284] · Answer 1 · 2022-07-19T17:39:27+03:00

Answer:

Theodore's

the interest rate in Theodore's bank is higher

Step-by-step explanation:

A rational investor would want to invest in a bank that offers a higher interest rate because more money is usually preferred to less money.

If the same amount, 1500 was deposited in both banks,

interest in Theodore's bank after 4 years = 1500 x 0.042 x 4 = $252

$252 would be preferred to the $216 earned at Bella's bank

Theodore earned ​$ in interest after 4 years on a principal of ​$440. His simple interest rate is​ 4.2%. Bella earned ​$216 in i

Theodore earned $ in interest after 4 years on a principal of $440. His simple interest rate is 4.2%. Bella earned $216 in i