Question

The formula I = prt gives the simple interest / earned on an account where an amount p is deposited at an interest rate r for a certain number of years t. Use the table to order the accounts from least to greatest interest earned after 5 years.

And the table is Account: A p ($) 350 r (%) 4
B p ($) 500 r (%) 3.5
C p ($) 500 r (%) 4.25 Yes this is somehow an elementary question

Answer 1

C < B < A

Explanation:

Given formula of simple interest,

I = prt

Where,

p = principal amount,

r = rate per period,

t = number of periods,

A) If p = $ 350, r = 4% = 0.04, t = 5 years,

Then the simple interest is,

`I_1=350* 0.04* 5=\$ 70`

B) If p = $ 500, r = 3.5% = 0.035, t = 5 years,

Then the simple interest is,

`I_2=500* 0.035* 5=\$ 87.5`

C) If p = $ 500, r = 4.25 % = 0.0425, t = 5 years,

Then the simple interest is,

`I_3=500* 0.0425* 5=\$ 106.25`

∵
`I_3 < I_2 < I_1`

Hence, the accounts from least to greatest interest earned after 5 years.

C < B < A