Danielle and Gabrielle each opened a savings account with a deposit of $150. • Danielle earned 3.5% simple interest per year. • Gabrielle earned 4% simple interest per year. • Neither Danielle nor Gabrielle made additional deposits or withdrawals. How much more did Gabrielle receive in interest than Danielle after four years?
The difference was 0.5% per year, so 150*0.005*4
To solve this problem, we need to find the interest earned by each person and then compare the difference.
For Danielle's account:
Principal = $150
Interest rate = 3.5%
Time = 4 years
We can use the formula for simple interest to calculate the amount of interest earned by Danielle:
Interest = Principal × Rate × Time
Plugging in the values:
Danielle's Interest = $150 × 0.035 × 4
Simplifying:
Danielle's Interest = $21
Now let's calculate Gabrielle's interest in the same way:
Principal = $150
Interest rate = 4%
Time = 4 years
Gabrielle's Interest = $150 × 0.04 × 4
Simplifying:
Gabrielle's Interest = $24
To find the difference in the interest earned by Gabrielle and Danielle, we subtract Danielle's interest from Gabrielle's interest:
Difference = Gabrielle's Interest - Danielle's Interest
Difference = $24 - $21
The difference is $3.
Therefore, Gabrielle received $3 more in interest than Danielle after four years.