Question

Mark’s mother is planning to invest $25,000 into each of two savings accounts to save money to remodel her restaurant. • Bank 1 offers an interest rate of 5. 25%. • Bank 2 offers an interest rate of 8. 5%. Both accounts pay simple interest. Marks's mother will leave the money in each account for exactly 3 years. What is the sum of the interest the two accounts will earn at the end of 3 years?

Answer 1

`~~~~~~ \stackrel{\textit{\LARGE Bank 1}}{\textit{Simple Interest Earned}} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$25000\\ r=rate\to 5.25\%\to (5.25)/(100)\dotfill &0.0525\\ t=years\dotfill &3 \end{cases} \\\\\\ I = (25000)(0.0525)(3) \implies I = 3937.5 \\\\[-0.35em] ~\dotfill`

`~~~~~~ \stackrel{\textit{\LARGE Bank 2}}{\textit{Simple Interest Earned}} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$25000\\ r=rate\to 8.5\%\to (8.5)/(100)\dotfill &0.085\\ t=years\dotfill &3 \end{cases} \\\\\\ I = (25000)(0.085)(3) \implies I = 6375 \\\\[-0.35em] ~\dotfill\\\\ 3937.5~~ + ~~6375\implies \text{\LARGE 10312.5}`