Question

Calculate the interest earned on each simple-interest account given the original principal, annual interest rate, and length of time the account was held. Match each amount to the corresponding account description.

Account 1: $1,100 at 3.2% for 3 years
Account 2: $990 at 3.15% for 4 years
Account 3: $1,025 at 2.8% for 5 years
a) $124.74
b) $99.66
c) $105.60
d) $126.72

Answer 1

To calculate the interest earned on each simple-interest account, use the formula: Interest = Principal x Rate x Time. For Account 1, the interest earned is $105.60. For Account 2, the interest earned is $124.74. For Account 3, the interest earned is $143.50.

Step-by-step explanation:

To calculate the interest earned on each simple-interest account, we can use the formula:

Interest = Principal x Rate x Time

For Account 1, the interest earned is:

$1,100 x 0.032 x 3 = $105.60

For Account 2, the interest earned is:

$990 x 0.0315 x 4 = $124.74

For Account 3, the interest earned is:

$1,025 x 0.028 x 5 = $143.50

Therefore, the correct match is:

1. Account 1: $105.60
2. Account 2: $124.74