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12 March, 00:38

you invest $1,000 in each of two accounts. account a earns simple interest at a rate of2.42 % over 4 years. account b earns simple interest at a rate of2.42% over 24 months. find the interest earned by each account. how does the interest earned by the two accounts compare?

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Answers (2)
  1. 12 March, 00:48
    0
    Step-by-step explanation:

    The formula for simple interest is expressed as

    I = PRT/100

    Where

    P represents the principal

    R represents interest rate

    T represents time

    Considering investment A,

    P = $1000

    R = 2.42%

    T = 4 years

    I = (1000 * 2.42 * 4) / 100 = $96.8

    Considering investment B

    P = 1000

    R = 2.42

    T = 24 months = 2 years

    I = (1000 * 2.42 * 2) / 100 = $48.4

    The interest in investment A is greater and it is 2 times the amount earned in investment B
  2. 12 March, 01:02
    0
    Account A = $ 96.80

    Account B = $ 48.40

    Step-by-step explanation:

    Account A

    Principal = $1,000

    rate = 2.42% = 0.0242

    time = 4 years

    To find the interest we will use the formula:

    I = PTR

    I = 1000 x 4 x 0.0242

    I = $96.80

    Account B

    P = 1,000

    t = 24 months = 2 years

    r = 2.42% = 0.0242

    I = PTR

    I = 1000 x 2 x 0.0242

    I = $ 48. 40

    difference in interest = Interest a - Interest b

    difference = 96.80 - 48.40

    difference = $ 48. 40

    The interest on Account A doubles the interest on Account B
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