Paul earns more interest than Monica does.
Simple interest can be defined as a form of interest in which the percent rate is applied on the same principal for a given period of time.
Given that,
Money deposited by Monica is $200 at simple interest of 3.7%.
Money deposited by Paul is $300 at simple interest of 2.9%.
The expression to calculate simple interest is given as,
(P × r × t)/100
Substitute the corresponding values to obtain the simple interest for both cases as follows,
Interest gained by Monica is (200 × 3.7 × 1)/100 = $7.4.
Interest gained by Paul is (300 × 2.9 × 1)/100 = $8.7.
Hence, monica is not correct as the interest earned by Paul is greater than that of monica.
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