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 2 years?

A.
$51.00
B.
$34.00
C.
$102.00
D.
$510.00

Answer 1

To find the interest earned the formula is
I=prt
I interest earned?
P principle
R interest rate
T time

The interest earned of the first account is
I=500×0.034×2=34

The interest earned of the second account is
I=500×(0.034÷2)×2=17

Total interest of both accounts is
I=34+17=51

So the answer is 51