Governments 41931

Father put €600 in a bank that pays government interest at a rate of 3%p. A. Grandfather put €610 in a bank that will make governments at a rate of 2%p. A. Which will have more money if they withdraw from the bank after one year?

Correct answer:

a =  618
b =  622.2

Step-by-step explanation:

$$\begin{gathered} x=600\text{Eur} \\ {p}_1=100\%+3\%=1+\frac{3}{100}=1.03 \\ a=x\cdot p_1=600\cdot 1.03=618 \end{gathered}$$

$$\begin{gathered} y=610\text{Eur} \\ {p}_2=100\%+2\%=1+\frac{2}{100}=1.02 \\ b=y\cdot p_2=610\cdot 1.02=\frac{3111}{5}=622\frac{1}{5}=622.2 \\ b>a \end{gathered}$$

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