Question

The amount of simple interest accrued on a sum of money varies jointly with the amount of money, the interest rate, and the time the money is invested. A sum of money is invested at 4% for 3 years and accrues $168 in interest. The same sum of money is invested in a second account at 6% for 4 years. Which statement is true?

Which is the answer?

A )The amount of interest accrued on the second account is less than double the amount of interest accrued on the first account.

B )The amount of interest accrued on the second account is double the amount of interest accrued on the first account.

C ) The amount of interest accrued on the second account is more than double but less than triple the interest on the first account.

D ) The amount of interest accrued on the second account is more than triple the interest accrued on the first account.

Answer 1

D is your correct answer.

Answer 2

B )The amount of interest accrued on the second account is double the amount of interest accrued on the first account.

Explanation:

A sum of money is invested at 4% for 3 years and accrues $168 in interest.

Lets find the principle.

The formula for simple interest is =

`I=(p* r* t)/(100)`

p = ?

i = 168

r = 4%

t = 3

Now putting these values in the formula;

`168=(p*4*3)/(100)`

`16800=12p`

p = $1400

The same sum of money is invested in a second account at 6% for 4 years.

So, interest will be =

`I=(1400*6*4)/(100)`

I = $336

Difference between both interests =
`336-168=168` dollars

We can see, that the second account gives double amount of $168.

Now, the true statement is :

B )The amount of interest accrued on the second account is double the amount of interest accrued on the first account.