Answer:
Jenn's account
Step-by-step explanation:
Given that:
LINDSAY'S ACCOUNT :
Principal = amount deposited = $250
Final Amount after 1 year = $253
Period (t) = 1 year
JENN'S ACCOUNT :
Principal = amount deposited = $250
Final Amount after 2 years = $257.50
Period (t) = 2 year
Using the relation :
A = P(1 + rt)
A = final amount ; r = interest rate ; t = time
Lindsay :
253 = 250(1 + r(1))
253 = 250 + 250r
253 - 250 = 250r
3 = 250r
r = 3/250
r = 0.012 ; (0.012 * 100) = 1.2%
Jenn:
257.50 = 250(1 + r(2))
257.50 = 250 + 500r
257.50 - 250 = 500r
7.50 = 500r
r = 7.50/500
r = 0.015 ; (0.015 * 100) = 1.5%
Hence, JENN'S deposit has the greater interest rate. (1.5 > 1.2)%
