Monica deposits $400 into a savings account that pays a simple interest rate of 4.4%. paul deposits $500 into a savings account that pays a simple interest rate of 3.6%. monica says that she will earn more interest in 1 year because her interest rate is higher. is she correct? justify your response.

From the above calculation it is clear that The interest earn by Monica is less than the The interest earn by Paul , so Monica is wrong

Step-by-step explanation:

Given as :

The principal amount deposited by Monica in account = $ 400

The rate of interest = 4.4 % at simple interest

The time period = 1 years

Let The interest earn by Monica = $ x

From simple interest

Simple Interest =

Or, $ x =

Or,  x = $ 17.6

So, The interest earn by Monica =  x = $ 17.6

Again

The principal amount deposited by Paul in account = $ 500

The rate of interest = 3.6 % at simple interest

The time period = 1 years

Let The interest earn by Paul = $ y

From simple interest

Simple Interest =

Or, $ y =

Or,  y = $ 18

So, The interest earn by Paul =  y = $ 18

∴ As The interest earn by Paul The interest earn by Monica

Hence from the above calculation it is clear that The interest earn by Monica is less than the The interest earn by Paul , so Monica is wrong Answer