Question

You have 2 different savings accounts. For Account​ A, the simple interest earned after 3 months is ​$2.00. For Account​ B, the simple interest earned after 30 months is ​$38.50. If the interest rate is 3.2​% for Account A and 2.2​% 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 1

Account 1 :

`Interst= (p* r* t)/(100)\\\\2 = (p* 3.2* 3)/(100)\\\\p = \$20.83`

Account 2 :

`Interst= (p* r* t)/(100)\\\\38.50 = (p* 2.2* 30)/(100)\\\\p = \$58.33`

Interest of first month :

1 )
`I=(20.83 * 3.2)/(100)=\$0.67`

2)
`I=(58.33 * 2.2)/(100)=\$1.28`

Account 2 has most interest in 1 st month.

Hence, this is the required solution.