Answer:
Account A = $ 96.80
Account B = $ 48.40
Step-by-step explanation:
Account A
Principal = $1,000
rate = 2.42% = 0.0242
time = 4 years
To find the interest we will use the formula :
I = PTR
I = 1000 x 4 x 0.0242
I = $96.80
Account B
P = 1,000
t = 24 months = 2 years
r = 2.42% = 0.0242
I = PTR
I = 1000 x 2 x 0.0242
I = $ 48. 40
difference in interest = Interest a - Interest b
difference = 96.80 - 48.40
difference = $ 48 . 40
The interest on Account A doubles the interest on Account B
Answer:
Step-by-step explanation:
The formula for simple interest is expressed as
I = PRT/100
Where
P represents the principal
R represents interest rate
T represents time
Considering investment A,
P = $1000
R = 2.42%
T = 4 years
I = (1000 × 2.42 × 4)/100 = $96.8
Considering investment B
P = 1000
R = 2.42
T = 24 months = 2 years
I = (1000 × 2.42 × 2)/100 = $48.4
The interest in investment A is greater and it is 2 times the amount earned in investment B
