Question

You invest a total of

Answer 1

`3\%\:interest=`$750

`4(1)/(2)\%` interest=$1,125

Explanation:

We use the formula
`I=P*R*T` to calculate simple interest.

For the first account the principal is P=$25,000

The rate is R=3%=0.03

The time is T=1 year

We substitute into the formula to get:

`I=25,000*0.03*1`

This simplifies to
`I=750`

For the second account the principal is still P=$25,000

The rate is
`R=4(1)/(2)\%=0.045`

The time is T=1 year

We substitute into the formula to get:

`I=25,000*0.045*1`

This simplifies to
`I=1125`