you invest $1,000 in each of two accounts. account a earns simple interest at a rate of2.42 % over 4 years. account b earns simple interest at a rate of2.42% over 24 months. find the interest earned by each account. how does the interest earned by the two accounts compare?

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

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