Given:
Lehana opened a savings account with a deposit of $50 and earned 2.5% simple interest per year.
Marty opened a savings account with a deposit of $50 and earned 2% simple interest per year.
To find:
The interest difference after 4 years.
Explanation:
Using the simple interest formula,
[tex]S.I=\frac{Prt}{100}[/tex]Substituting in the given formula,
[tex]\begin{gathered} P=50 \\ r=2.5 \\ t=4 \end{gathered}[/tex]The simple interest earned by Lehana is,
[tex]\begin{gathered} S.I=\frac{50\times2.5\times4}{100} \\ =\text{ \$}5 \end{gathered}[/tex]Substituting in the given formula,
[tex]\begin{gathered} P=50 \\ r=2 \\ t=4 \end{gathered}[/tex]The simple interest earned by Marty is,
[tex]\begin{gathered} S.I=\frac{50\times2\times4}{100} \\ =\text{ \$4} \end{gathered}[/tex]Therefore, Lehana receive $1 in interest more than Marty after four years
Final answer:
Lehana will receive $1 in interest more than Marty after four years.
