Question

Supposedly have two bank accounts and bank account a deposit $100 and make account deposit 300 account. A has a simple interest rate of 4.2% can be has a simple interest rate of 2.4% one year later you get a bank statement from each bank one of the bank statement shows an incorrect amount of interest. The interest for account is $4.20 the interest for account B is $720

Answer 1

The question is regarding simple interest calculations for two bank accounts with different principal amounts and interest rates. After applying the simple interest formula (I = P × R × T) to each account, it's determined that Account A is correct with $4.20 of interest, but Account B's statement incorrectly shows $720 interest instead of $7.20.

Step-by-step explanation:

The student has asked a question related to calculating simple interest for two separate bank accounts. To solve the problem, a step-by-step explanation is provided using the simple interest formula, which is Interest = Principal × Rate × Time (I = P × R × T).

Account A Simple Interest Calculation

For Account A:

Principal (P) = $100

Interest Rate (R) = 4.2% or 0.042

Time (T) = 1 year

Simple Interest (I) = $100 × 0.042 × 1 = $4.20

Account B Simple Interest Calculation

For Account B:

Principal (P) = $300

• Interest Rate (R) = 2.4% or 0.024
• Time (T) = 1 year
• Simple Interest (I) should be $300 × 0.024 × 1 = $7.20, not $720

Therefore, the incorrect bank statement is for Account B which incorrectly shows $720 instead of the correct simple interest amount of $7.20.