One year ago, Lindsey deposited $250 into a savings
account. Her balance
deposited $250 into
now $253, Two years ago, Jenn
savings account Her balance is
now $257.50. Which account has the greater simple
interest rate? Explain,

Answer:

Jenns account has the greater simple interest rate.

Step-by-step explanation:

The formula for simple interest is:

A = P * ( 1 + r * t )

Where A is the final amount after investment, P is the initial amount, r is the rate of interest and t is the time periods.

For Lindsey:

253 = 250 * ( 1 + r * t )

Solve for r

r = ( 253/250 ) - 1 = 0.012

Lindsey simple interest was 1.2% annually

For Jenn:

257.50 = 250 * ( 1 + r * 2 )

r = ( 257.50/250 ) - 1 )/2 = 0.015

Jenn simple interest was 1.5% annually  

Therefore Jenns account has the highest simple interest rate.

Answer:

Lindsay’s interest is $3 for one year. Using the formula for interest, I = prt, Lindsey’s money is earning at a rate of 1.2%. Jenn has earned $3.75 for one year. Her money is earning at a rate of 1.5%, which is a higher interest rate.

Step-by-step explanation:

Sample response :)

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