Question

Pete and Teegan each put the same amount of money in a new bank account. Teegan's account earns 2.75% simple interest, and she earned $2.20 in interest after one year. Pete's account earns 5% simple interest. How much interest did Pete's account earn after one year?

Answer 1

Answer:

$4.

Step-by-step explanation:

Let us assume that Pete and Teegan each put an amount of $P in a new bank account.

Teegan's account earns 2.75% simple interest and she earned $2.20 in interest after one year.

So, we can write $\frac{P \times 2.75}{100} = 2.20$

⇒ P = $80

Now, this $80 in Pete's account earns 5% simple interest.

Then after one year Pete will earn as interest $\frac{80 \times 5}{100} = 4$ Dollars. (Answer)