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10 November, 07:10

Darryl deposits $1,500 into a savings account that has a simple interest rate of 2.7%. Lori deposits $1,400 into a savings account that has a simple interest rate of 3.8%. If no other transactions are made, who will have more money in their account after 10 years? How much more?

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  1. 10 November, 09:48
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    Darryl:

    Answer:

    A = $1,905.00

    (I = A - P = $405.00)

    Equation:

    A = P (1 + rt)

    Lori:

    Answer:

    A = $1,932.00

    (I = A - P = $532.00)

    Equation:

    A = P (1 + rt)

    Thus $532-$405 = $127 more in Lori's account
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