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18 June, 01:04

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.

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Answers (1)
  1. 18 June, 03:09
    0
    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
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