Question

Dakota earned three dollars 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.

a. Account Edge
b. Account Be
c. Both have equal principle
d. Not enough information

Answer 1

To determine which account has the greater principal, we use the simple interest formula, adjusting for the short time frame of 18 minutes and annual interest rates. Calculations reveal the principals for Account Edge and Account Be. Comparison of these principals answers the student's question.

Step-by-step explanation:

The student's question is about calculating which account has the greater principal, given the interest earned and interest rates. Since simple interest is the topic, we'll use the formula I = PRT where I is interest, P is principal, R is rate, and T is time. For Account Edge, we know Dakota earned $3 at a 2% interest rate in 18 minutes. To find the principal for Account Edge, we rearrange the formula to P = I / (RT). Since time is less than a year, we adjust the rate and time accordingly.

First, we convert 18 minutes into a fraction of an hour: 18 minutes is 18/60 or 0.3 hours. Since interest rates are generally annual, we then convert hours into a fraction of a year: 0.3/8760 (as there are 8760 hours in a year). Doing similar calculations for Account Be, we find the principal for Account Be is 18.75 = P * 0.05 * (18/60/8760). Comparing these two amounts will give us which account has a larger principal.