Question

Gia opened two savings accounts at two different banks. One account earns an annual 3.4% simple interest, and the other earns half as much. If she deposited $500 in each account, how much total interest will she have earned in 3 years? A. $76.50 B. $153.00 C. $765.00 D. $38.25

Answer 1

Answer:

The correct option is;

A. $76.50

Step-by-step explanation:

To solve the question, we note the formula for simple interest = Principal × Rate × Time/100

That is

$S.I. = \frac{Principal \times Rate \times Time}{100} = \frac{P \times R \times T}{100}$

Where:

P = Principal Amount = $500.00

R = Interest Rate = 3.4%

T = Time period = 3 Years

Therefore,

$S.I. = \frac{500 \times 3.4 \times 3}{100} = \ 51$

For the second account, we have

P = Principal Amount = $500.00

R = Interest Rate = 3.4/2% = 1.7 %

T = Time period = 3 Years

Therefore,

$S.I. = \frac{500 \times 1.7 \times 3}{100} = \ 25.5$

Therefore, the total interest she have earned in three years is $51 + $25.5 = $76.5