Question

Someone, please help!

Answer 1

Hello there! I can help you! The formula for simple interest is prt. This means that you multiply the principal (the initial amount in the bank), by the rate (simple interest rate) by the amount of time (could be in months or years). 

A. Okay. For this problem, we are looking for the amount of interest that will be in the bank after 6 months. We would multiply the time by 0.5, because 6 months is 1/2 a year and 1/2 = 0.5. Let's start off with the 1st account. 4,000 * 5.25% (0.0525) = 210. 210 * 0.5 is 105. There will be $105 in the first account after 6 months. Now, the second one. 2,000 * 6% (0.06) = 120. 120 * 0.5 is 60. There will be $60 in the 2nd account after 6 months. Here are the answers easier to read.

1st account: $105
2nd account: $60

b. To find the difference in the amount of interest earned, just subtract both amounts. 105 - 60 is 45. The difference of the amount of interest earned between the 2 accounts is $45.

c. The 1st account is giving you the most interest out of both accounts. Although it has a lower APR, it gives you the most money, because you have more money in the account initially, than in the 2nd account. When it comes to simple interest, it is calculated, based on the initial amount in the bank. You would have many more dollars in the bank with the first account, and that number would go up as more interest is added.

Answer 2

Answer:

A.) First account: First, I multiplied 4,000 by 0.0525 to get 210. Then, I multiplied the total by 0.5, because 6 months is equal to half a year (1/2) and 1/2 = 0.5. So, 210 times 0.5 is 105. There will be $105 in the first account after 6 months.  

Second account: First I multiplied 2,000 by 0.06 to get 120. Then I multiplied 120 by 0.5. I got 60. There will be $60 in the second account after 6 months.  

B.) The difference in the amount of interest earned would be $45. I did this by subtracting 60 from 105.  

C.) The first account has my money working for me the best. The first account gives me the most money because I have more money in the account to start out with, than in the second account. Yes, the interest rate is higher in the second account, but since I have more money in the first account, I am receiving more money with the first account's interest rate.