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Mary and Lewis each open a savings account at the same time. Mary invests $3,700 in an account yielding...

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?
a. Lewis has $879 more than Mary.
b. Lewis has $179 more than Mary.
c. Mary has $176 more than Lewis.
d. Mary has $345 more than Lewis.
Please select the best answer from the choices provided
O A
O B
O C
O D

Answer

To find the total amount of money each has after 15 years, we use the formula for simple interest: Interest = Principal × Rate × Time.

  1. Mary's Account:
    Principal = $3,700
    Rate = 3.2% = 0.032
    Time = 15 years
    Interest = $3,700 × 0.032 × 15 = $1,776
    Total Amount = $3,700 + $1,776 = $5,476
  2. Lewis's Account:
    Principal = $3,000
    Rate = 5.9% = 0.059
    Time = 15 years
    Interest = $3,000 × 0.059 × 15 = $2,655
    Total Amount = $3,000 + $2,655 = $5,655

Lewis has more money than Mary. The difference is $5,655 - $5,476 = $179.

The correct answer is b. Lewis has $179 more than Mary.

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