Question

Dakota earned ​$17.50 in interest in Account A and ​$21.00 in interest in Account B after 21 months. If the simple interest rate is ​4% for Account A and ​3% for Account​ B, which account has the greater​ principal? Explain.

Answer 1

Account B has the greater principal

Explanation:

`\boxed{interest=principal* interest\ rate}`

Account A:

17.50 = principal A × 4%

principal A = 17.50 ÷ 4%

`=17.50/(4)/(100)`

`=17.50*(100)/(4)`

= $437.50

Account B:

21.00 = principal B × 3%

principal b = 21.00 ÷ 3%

`=21.00/(3)/(100)`

`=21.00*(100)/(3)`

= $700.00

Therefore, Account B has the greater principal