Question

Monica deposits $300 into a savings account that has a simple interest of 3.4%. Paul deposits $400 into a savings account that has a simple interest rate of 2.4%. Who earned more in interest and in one year?

Answer 1

Answer: Monica earned more interest

Explanation:

The formula for calculating simple interest is given by :

S.I =
`(ptr)/(100)`

For Monica

S.I = 300 x 3.4 x 1 / 100

S.I = $10.2

For Paul

S.1 = 400 x 2.4 x 1 / 100

S.I = $9.6

Therefore : Monica earned more interest