You invest $1,000.00 in one account and $4,000.00 in another account. Both accounts have the same interest rate over the same amount of time. How will the interest earned compare?

A.) The $4,000.00 account will earn 2 times the amount of interest.

B.) The $4,000.00 account will earn one-fourth the amount of interest.

C.) They will earn the same amount of interest.

D.) The $4,000.00 account will earn 4 times the amount of interest.

Question

Fernando Hanna

Mathematics

16 April, 18:48

You invest $1,000.00 in one account and $4,000.00 in another account. Both accounts have the same interest rate over the same amount of time. How will the interest earned compare?

A.) The $4,000.00 account will earn 2 times the amount of interest.

B.) The $4,000.00 account will earn one-fourth the amount of interest.

C.) They will earn the same amount of interest.

D.) The $4,000.00 account will earn 4 times the amount of interest.

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Answers (1)

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Averi Morgan · Answer 1

D.) The $4,000.00 account will earn 4 times the amount of interest.

Step-by-step explanation:

The interest rate if the percentage we are gonna earn from the principal.

So, in this case, if both investments have the same interest rate, the will grow with the same proportion that the initial amount have.

That is, we can see that $4,000 is four times $1,000. Under the same interest rate, the earnings from the $4,000 account will be four times than $1,000 account, because the same interest rate won't change the initial proportion.