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 30 months is $38.50. If the interest rate is 3.2% for Account A and 2.2% for Account B, how much is the principal in each account? Which account earned you the most interest the first month? Explain your answer.

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PhantomWisdom PhantomWisdom · Answer 1 · 2020-10-26T02:36:03+01:00

Account 1 :

[tex]Interst= \dfrac{p\times r\times t}{100}\\\\2 = \dfrac{p\times 3.2\times 3}{100}\\\\p = \$20.83[/tex]

Account 2 :

[tex]Interst= \dfrac{p\times r\times t}{100}\\\\38.50 = \dfrac{p\times 2.2\times 30}{100}\\\\p = \$58.33[/tex]

Interest of first month :

1 ) [tex]I=\dfrac{20.83 \times 3.2}{100}=\$0.67[/tex]

2) [tex]I=\dfrac{58.33 \times 2.2}{100}=\$1.28[/tex]

Account 2 has most interest in 1 st month.

Hence, this is the required solution.