Two accounts earn simple interest. The balance yy (in dollars) of Account A after xx years can be modeled by y=10x+500y=10x+500. Account B starts with $400 and earns 5% simple annual interest.

a. Which account has a greater principal?

Question 2

How much greater is the principal? $

Question 3

b. Which account has a greater annual interest rate?

Question 4

How much greater is the annual interest rate?

%

Question

Mathematics

Winston Mcclure

26 July, 00:39

Two accounts earn simple interest. The balance yy (in dollars) of Account A after xx years can be modeled by y=10x+500y=10x+500. Account B starts with $400 and earns 5% simple annual interest.

a. Which account has a greater principal?

Question 2

How much greater is the principal? $

Question 3

b. Which account has a greater annual interest rate?

Question 4

How much greater is the annual interest rate?

%

+3

Answers (1)

Know the Answer?

Eva Martin · Answer 1

1)

A has a greater principal

2)

Principal of A is $500, the principal of B is $400, so A's principal is greater by $100

3)

Annual interest rate of A:

10/500 x 100

interest rate of A = 2%

The interest rate of B is higher.

4)

B's annual interest rate is 5% and A's annual interest rate is 2%, so B's is higher by 3%.