Question

You have 2 different savings accounts. For Account​ A, the simple interest earned after 18 months is ​$5.70. For Account​ B, the simple interest earned after 21 months is ​$16.10. If the interest rate is ​3.8% for Account A and ​2.3% for Account​ B, how much is the principal in each​ account? Which account earned you the most interest the first​ month? Explain your answer.

Answer 1

Answer:
Principal in account A = $200
Principal in account B = $600
Account B earned more interest in the first month.
Explanation:
Given two accounts:
Account A:
Time = 9 months = years
Interest rate = 3.8%
Interest earned = $5.70
Account B:
Time = 27 months = years
Interest rate = 2.4%
Interest earned = $32.40
To find:
Principal in each account.
Most interest earned in the first month?
Solution:
First of all, let us have a look at the formula for Simple Interest.

Putting the values for Account A and finding the value of Principal:

Now, Putting the values for Account B and finding the value of Principal:

Interest earned in one month i.e. years:
Account A:


Account B earned more interest in the first month.
Therefore, the answers are:
Principal in account A = $200
Principal in account B = $600
Account B earned more interest in the first month.