Question

You have 2 different savings accounts. For Account​ A, the simple interest earned after months is ​$1.90. For Account​ B, the simple interest earned after 18 months is ​$22.05. If the interest rate is 3.8% for Account A and 2.1% for Account​ B, how much is the principal in each​ account? Which account earned you the most interest the first​ month? Explain your answer.

Please help i need to turn it in soon!!

Answer 1

The computation is shown below;

As we know that

The simple interest is

Simple interest = Principal × rate × time

For Account A, the principal would be

2 = Principal × 3.2% × 3

So, the principal is $20.83

For account B, the principal would be

38.50 = Principal × 2.2% × 30

So, the principal is $58.33

Now the interest for both the accounts are as follows

For account 1

= $20.83 × 3.2%

= $0.67

And, for the account 2

= $58.33 × 2.2%

= $1.28

As it can be seen that the account 2 has the highest interest

The same is to be considered

Explanation: