Respuesta :
Answer:
• Account A has a principal of $100
,• Account B has a principal of $700
,• Account B earned you the most interest in the first month.
Explanation:
Account A
• Simple Interest = $0.95
,• Time = 3 months = 3/12 years
,• Interest Rate=3.8%
We know that:
[tex]\begin{gathered} $Simple\: Interest=\frac{Principal X Rate X Time}{100}$ \\ 0.95=\frac{P\times3.8\times\frac{3}{12}}{100} \\ P\times3.8\times\frac{3}{12}=95 \\ 0.95P=95 \\ P=\frac{95}{0.95} \\ P=\$100 \end{gathered}[/tex]Account B
• Simple Interest = $21
,• Time = 15 months = 15/12 years
,• Interest Rate=2.4%
We know that:
[tex]\begin{gathered} $Simple\: Interest=\frac{Principal X Rate X Time}{100}$ \\ 21=\frac{P\times2.4\times\frac{15}{12}}{100} \\ P\times2.4\times\frac{15}{12}=2100 \\ 3P=2100 \\ P=\frac{2100}{3} \\ P=\$700 \end{gathered}[/tex]Next, we determine the account that earned you the most interest in the first month.
Account A (Interest in the First Month)
[tex]\begin{gathered} $Simple\: Interest=\frac{Principal X Rate X Time}{100}$ \\ =\frac{100\times3.8\times\frac{1}{12}}{100} \\ =\$0.32 \end{gathered}[/tex]Account B (Interest in the First Month)
[tex]\begin{gathered} $Simple\: Interest=\frac{Principal X Rate X Time}{100}$ \\ =\frac{700\times2.4\times\frac{1}{12}}{100} \\ =\$1.40 \end{gathered}[/tex]We see that Account B earned you the most interest in the first month.
