Question 388310

The best way to solve this problem is to use the compound interest formula,
A=P(1+R/n)^n,which states that the amount of interest (A) earned is equal to the principal(P) times one plus the interest per period raised to the number of compound periods(n)

For Tuan: P=1500(amt deposited),R=7% or .07, 2 compound periods
For Adela: P=1500(amt deposited),R=8% or .08, one period
Tuan earned = 1500(1+.07/2)^2=1606.84
Adela earned = 1500x(1+.08/1)^1=1620
Ans: Adela earned $13.16 more in interest than Tuan after one year.