Question

PLEASE HELP ASAP!!!!

Answer 1

The correct Option is Option A

Account B because the principal of Account B is $300 and the principal for Account A is $150

Explanation:

Interest earned from Account A = $ 4.50

Interest earned from Account B = $22.50

Time t = 18 months

Interest rate for Account A = 2%

Interest rate for Account B = 5%

We need to find which account has greater principal

The formula used to calculate principal is:
`Interest=Principal* r * t`

where r is rate and t is time

Finding Principal for Account A:

Interest earned from Account A = $ 4.50

Time t = 18 months = 1.5 years

Interest rate for Account A = 2% = 0.02

Putting values and finding Principal

`Interest=Principal* r * t\\4.50=Principal*0.02*1.5\\Principal=(4.50)/(0.02*1.5) \\Principal=(4.50)/(0.03) \\Principal=150`

So, The Principal Amount for Account A = $150

Finding Principal for Account B:

Interest earned from Account B = $ 22.50

Time t = 18 months = 1.5 years

Interest rate for Account A = 5% = 0.05

Putting values and finding Principal

`Interest=Principal* r * t\\22.50=Principal*0.05*1.5\\Principal=(22.50)/(0.05*1.5) \\Principal=(22.50)/(0.075) \\Principal=300`

So, The Principal Amount for Account B = $300

So, the correct Option is Option A

Account B because the principal of Account B is $300 and the principal for Account A is $150