Question

You have 2 different savings accounts. For Account​ A, the simple interest earned after 3 months is ​$2.00. For Account​ B, the simple interest earned after 18 months is ​$20.70. If the interest rate is 3.2​% 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

Account A = $20.8

Account B = $

Explanation:

how much is the principal in each​ account?

Formula = (P x R x T)/100

Account A: -

2.00 = P(3.2)(3) / 100

(2 x 100) / (3.2 x 3) = P

P = $ 20.8

Account B: -

20.7 = P(3.2)(18) / 100

(20.7 x 100) / (3.2 x 18) = P

P = $35.9

Which account earned you the most interest the first​ month?

Account A: -

3 months ----> $2

1 month ----> $x

x = 2 / 3

x = $0.67

Account B: -

18 months ----> 20.7

1 month ----> $y

y = 20.7 / 18

y = $1.15

Account B has earned more as 1.15 > 0.67 ( 1.15 IS greater than 0.67)

I hope my answer helps you.