Question

Dakota earned ​$11.25 in interest in Account A and ​$25.00 in interest in Account B after 15 months. If the simple interest rate is ​3% for Account A and 5​% for Account​ B, which account has the greater​ principal? Explain.

Which account has the greater​ principal? Select the correct answer below and fill in the answer boxes to complete your choice.

Answer 1

Explanation:

I=Prt

11.25=A(0.03)(15/12)

11.25=A(0.0375)

A=11.25/(0.0375)

A=$300

25=B(0.05)(15/12)

25=B(0.0625)

B=25/(0.0625)

B=$400

So account B has the greater principal.