Answer:
To calculate the interest earned by Lehanna and Marty over three years, we'll use the formula for simple interest:
Simple Interest = Principal × Rate × Time
To calculate the interest earned by Lehanna and Marty over three years, we'll use the formula for simple interest:
Simple Interest = Principal × Rate × Time
Lehanna's interest after 3 years:
Lehanna’s Interest
=
100
×
0.025
×
3
=
7.5
Lehanna’s Interest=100×0.025×3=7.5
Marty's interest after 3 years:
Marty’s Interest
=
100
×
0.02
×
3
=
6
Marty’s Interest=100×0.02×3=6
Now, let's find the difference in the interest earned by Lehanna and Marty:
Difference
=
Lehanna’s Interest
−
Marty’s Interest
Difference=Lehanna’s Interest−Marty’s Interest
Difference
=
7.5
−
6
=
1.5
Difference=7.5−6=1.5
Lehanna received $1.50 more in interest than Marty after three years.
