Question

You invest a total of

Answer 1

Answer:

$3\%\:interest=$$750

$4\frac{1}{2}\%$ interest=$1,125

Step-by-step explanation:

We use the formula $I=P*R*T$ to calculate simple interest.

For the first account the principal is P=$25,000

The rate is R=3%=0.03

The time is T=1 year

We substitute into the formula to get:

$I=25,000*0.03*1$

This simplifies to $I=750$

For the second account the principal is still P=$25,000

The rate is $R=4\frac{1}{2}\%=0.045$

The time is T=1 year

We substitute into the formula to get:

$I=25,000*0.045*1$

This simplifies to $I=1125$