Scenario

Jane puts $100 in the bank for a year. During that year, the bank lends Jane’s $100 to Maria. At the end of the year, Maria pays back to the bank $100 **plus the interest** she must pay. So she pays the bank $109.

$100 + ($100*0.09) = $109 Notes: 9% = 0.09

At the end of year, Jane takes out $100 she put in earlier **plus the interest** she earned. So she gets $106. $100 + ($100* 0.06) =$106 Notes: 6% = 0.06