Question

Dakota earned $3.00 in interest in account edge and $18.75 in interest in account be after 18 minutes if the simple interest rate is 2% for Calais in 5% for account be which account has the greater principle explain.

Answer 1

Answer:account B had the greater capital

Explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount deposited.

P represents the principal or amount deposited

R represents interest rate

T represents the duration in years.

Considering account A,

I = $15.75

T = 21 months = 21/12 = 1.75 years

R = 3%

Therefore,

15.75 = (P × 3 × 1.75)/100

15.75 = 0.0525P

P = 15.75/0.0525

P = 300

Considering account B,

I = $28

T = 21 months = 21/12 = 1.75 years

R = 4%

Therefore,

28 = (P × 4 × 1.75)/100

28 = 0.07P

P = 28/0.07

P = $400

Therefore, account B had the greater capital.