Question

dakota earned $9.00 in interest for account a and $18.75 in interest on account b after 18 months. if the simple interest rate is 4% for account a and 5% for account b which account has the greater principal?

Answer 1

To determine which account has the greater principal, we can use the formula for simple interest and set up equations for each account. After solving the equations, we find that account b has the greater principal of $250.

Step-by-step explanation:

To determine which account has the greater principal, we need to find the principal amount for each account using the given interest and interest rates.

Let's assume the principal amount for account a is Pa and the principal amount for account b is Pb.

Using the formula for simple interest: Interest = Principal × Rate × Time, we can set up the following equations:

1. 9 = Pa × 0.04 × 1.5 (18 months is equal to 1.5 years)
2. 18.75 = Pb × 0.05 × 1.5

Simplifying these equations, we get:

1. Pa = 9 / (0.04 × 1.5) = $200
2. Pb = 18.75 / (0.05 × 1.5) = $250

Therefore, account b has the greater principal of $250.