Question

You have 2 different saving accounts. For account A, the simple interest earned after 21 months is $11.90. For account B, the simple interest earned after 27 months is $31.05. If the interest rate is 3.4% 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

For 2 simple interest accounts, find earnings

Account A

$11.90 in 21 months is $0.57 per month

interest rate is 3.4%

then 3.4% is equal to $0.57

now 100% is equal to EARNINGS A

Multiply 100 x 0.57 / 3.4 = $16.76 dollars

Now finally add $16.76 + 11.90 =$ 28.66