Question

Tommy earned $62.40 in interest after 4 years on a principal of $400. His simple interest rate is 3.9%. Jane

earned $66.60 in interest after 3 years on a principal of $600. Her simple interest rate is 3.7%. Which bank would you rather
use, Tommy's or Jane's? Explain your reasoning.

Answer 1

I would rather use Jane's bank because she earned more interest in a shorter amount of time. Jane's bank has a higher simple interest rate of 3.7%, which means she earned more money in a shorter amount of time than Tommy did with his 3.9% rate.