Let us calculate there individual interest to ascertain which is greater .
Monica interest can be computed below
[tex]\begin{gathered} I=\text{prt} \\ \text{where} \\ p=\text{ principal}=\text{ \$400} \\ r=\text{rate}=\text{ 3.6\%=}\frac{3.6}{100}=0.036 \\ t=\text{time}=1\text{ year} \\ I=400\times0.036\times1=\text{ \$}14.4 \end{gathered}[/tex]
Paul's interest can be computed as follows
[tex]\begin{gathered} I=\text{prt} \\ p=\text{ \$500} \\ r=3.1\text{ \%=}\frac{3.1}{100}=0.031 \\ t=\text{ 1 year} \\ I=500\times0.031\times1=\text{ \$15.5} \end{gathered}[/tex]
Monica is wrong . Paul will earn more interest in 1 year than Monica.
