Question

Pete and Teegan each put the same amount of money in a new bank account. Teegan's account earns 2.75% simple interest, and she earned $2.20 in interest after one year. Pete's account earns 5% simple interest. How much interest did Pete's account earn after one year?

Answer 1

$4

Explanation:

Let us assume that Pete and Teegan each put an amount of $P in a new bank account.

Teegan's account earns 2.75% simple interest and she earned $2.20 in interest after one year.

P = $80

Now, this $80 in Pete's account earns 5% simple interest.

Then after one year Pete will earn as interest 80x5/100 = 4 Dollars.

Therefore your answer is $4.