Step-by-step explanation:
The formula for simple interest is expressed as
I = PRT/100
Where
P represents the principal or initial amount of money invested.
R represents interest rate
T represents time
Considering the investment on account A,
I = $6.94
R = 3.7%
T = 9 months = 9/12 = 0.75 years
6.94 = (P × 3.7 × 0.75)/100 = 0.02775P
P = 6.94/0.02775 = $250
Considering the investment on account B,
I = $13.80
R = 2.3%
T = 18 months = 18/12 = 1.5 years
13.8 = (P × 2.3 × 1.5)/100 = 0.0345P
P = 13.8/0.0345 = $400
To determine the account that earned more interest in the first month,
250/9 = $27.8
400/18 = $22.2
Account A earned you the most interest the first month because $27.8 is higher than $22.2
