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14 May, 17:04

Mia has $1,000 in savings and wants to deposit her money in the savings account that will pay the most annual

interest. She is choosing between two accounts: Account A pays 5 percent and Account B pays 4 percent. Which

account will pay more interest? How much more will it pay each year?

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Answers (1)
  1. 14 May, 20:09
    0
    Answer: Account A pays more interest. It pays $10 more.

    Step-by-step explanation:

    The following information can be derived from the question:

    Principal = $1000

    Account A rate = 5%

    Time = 1 year

    Interest = (Principal * Rate * Time) / 100

    = ($1000 * 5 * 1) / 100

    = $5000/100

    = $50

    Account A pays interest of $50

    Principal = $1000

    Account B rate = 4%

    Time = 1 year

    Interest = (Principal * Rate * Time) / 100

    = ($1000 * 4 * 1) / 100

    = $4000/100

    = $40

    Account B pays interest of $40

    From the solutions provided, Account A pays more interest. This is calculated as: $50 - $40 = $10
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