Meghan and Sabrina compared the amount of interest they each earned on their savings accounts. Each had deposited $1000, but Meghan earned $140 interest and Sabrina earned $157.50. Whose savings account had a higher interest rate? Explain.

Question

Meghan and Sabrina compared the amount of interest they each earned on their savings accounts. Each had deposited $1000, but Meghan earned $140 interest and Sabrina earned $157.50. Whose savings account had a higher interest rate? Explain.

Answer 1

I = PRT

140 = 1,000 * R
0.14 = 14% = R

157.5 = 1,000 * R
0.1575 = 15.75% = R

Answer 2

I assumed that they each deposited the money for a year.

Answer 3

To determine whose savings account had a higher interest rate, we need to calculate the interest rate for each person. The interest rate is typically expressed as a percentage.

First, let's calculate the interest rate for Meghan:
Interest Rate = (Interest Earned / Initial Deposit) * 100
= ($140 / $1000) * 100
= 14%

Now, let's calculate the interest rate for Sabrina:
Interest Rate = (Interest Earned / Initial Deposit) * 100
= ($157.50 / $1000) * 100
= 15.75%

Comparing the interest rates, we can see that Sabrina's savings account had a higher interest rate of 15.75% compared to Meghan's interest rate of 14%. Therefore, Sabrina's savings account had a higher interest rate.