11
QuizMultiple Choice

Simple Interest

Question 11 • (Kapuschinsky)WCA 3424 Consumer Applications 1st nine weeks 26-27

Mary and Lewis each open a savings account at the same time. Mary invests $3,700 in an account yielding 3.2% simple interest, and Lewis invests $3,000 in an account yielding 5.9% simple interest. After fifteen years, who has the greater total amount of money, and how much greater is it?

Answer
A
Lewis has $879 more than Mary.
B
Lewis has $179 more than Mary.
C
Mary has $776 more than Lewis.
D
Mary has $345 more than Lewis.

Explanation

With simple interest, the total is principal plus interest, where interest = principal × rate × time. Mary’s total is $3,700 + ($3,700 × 0.032 × 15) = $5,476, while Lewis’s is $3,000 + ($3,000 × 0.059 × 15) = $5,655. Lewis has $5,655 − $5,476 = $179 more, so the correct choice is “Lewis has $179 more than Mary.”

AI-written and checked against the verified answer.

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