Sammie and Joel invest their money with the Grabitall Bank.

Sammie invests £320 in an account that pays 4% simple interest each year.

Joel invests £420 in an account that pays 3% simple interest each year.

a) Who earns the most interest each year? Show your working?

b) How much money will Joel have after 5 years?

Make sure you give the total and not just the interest.

Include workings out.

Question

Gemma Collins

Mathematics

24 May, 14:38

Sammie and Joel invest their money with the Grabitall Bank.

Sammie invests £320 in an account that pays 4% simple interest each year.

Joel invests £420 in an account that pays 3% simple interest each year.

a) Who earns the most interest each year? Show your working?

b) How much money will Joel have after 5 years?

Make sure you give the total and not just the interest.

Include workings out.

+4

Answers (1)

Know the Answer?

Shepherd · Answer 1

a) Sammie earns

£320*4% = £12.80

each year.

Joel earns

£420*3% = £12.60

each year.

Sammie earns the most interest.

b) Joel's interest after 5 years is

£12.60*5 = £63

so the total amount of money Joel will have is

£420 + 63 = £483