Question

Challenge You have 2 different savings accounts. For Account A, the simple interest earned after 3 months is $1.60. For Account B, the simple interest earned after 30 months is $43.75. If the interest rate is 3.2% for Account A and 2.5% for Account B, how much is the principal in each account? Which account earned you the most interest the first month? Explain your answer. Account A has a principal of $ (Round to the nearest dollar as needed

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Answer 1

$1.28

Note for you:

I hope this helps!

Answer and Step-by-step explanation:

The computation is shown below;

As we know that

The simple interest is

Simple interest = Principal × rate × time

For Account A, the principal would be

2 = Principal × 3.2% × 3

So, the principal is $20.83

For account B, the principal would be

38.50 = Principal × 2.2% × 30

So, the principal is $58.33

Now the interest for both the accounts are as follows

For account 1

= $20.83 × 3.2%

= $0.67

And, for the account 2

= $58.33 × 2.2%

= $1.28

As it can be seen that the account 2 has the highest interest

The same is to be considered