Question

You invest $1000 in each of two accounts. Account A earns simple interest at a rate of 2.42% over four years. Account B earns simple interest at a rate of 2.42% over 24 months. Find the interest earned by the 2 accounts. HELP PLEASE

Answer 1

Acct A $96.80

Acct B $48.40

Explanation:

I = PRT

Acct A I = 1000(.0242)(4)

= $96.80

Acct B I = 1000(.0242)2)

= $48.40