You have 2 different savings accounts. For Account A, the simple interest earned after 18 months is $5.70. For Account B, the
simple interest earned after 21 months is $16.10. If the interest rate is 3.8% for Account A and 2.3% for Account B, how much is the principal in each account? Which account earned you the most interest the first month? Explain your answer.
Answer: Principal in account A = $200 Principal in account B = $600 Account B earned more interest in the first month. Step-by-step explanation: Given two accounts: Account A: Time = 9 months = years Interest rate = 3.8% Interest earned = $5.70 Account B: Time = 27 months = years Interest rate = 2.4% Interest earned = $32.40 To find: Principal in each account. Most interest earned in the first month? Solution: First of all, let us have a look at the formula for Simple Interest.
Putting the values for Account A and finding the value of Principal:
Now, Putting the values for Account B and finding the value of Principal:
Interest earned in one month i.e. years: Account A:
Account B earned more interest in the first month. Therefore, the answers are: Principal in account A = $200 Principal in account B = $600 Account B earned more interest in the first month.
Raising -1 to an odd power gives us -1, while raising -1 to an even power gives us (positive) 1. Because 2009 is odd, the answer is -1. The other answer choices are there to confuse you.