Question

The formula I = prt gives the simple interest / earned on an account where an amount p is deposited at an interest rate r for a certain number of years t. Use the table to order the accounts from least to greatest interest earned after 5 years.

And the table is Account: A p ($) 350 r (%) 4
B p ($) 500 r (%) 3.5
C p ($) 500 r (%) 4.25 Yes this is somehow an elementary question

Answer 1

C p ($) 500 r (%) 4.25

Answer 2

Answer:

C < B < A

Step-by-step explanation:

Given formula of simple interest,

I = prt

Where,

p = principal amount,

r = rate per period,

t = number of periods,

A) If p = $ 350, r = 4% = 0.04, t = 5 years,

Then the simple interest is,

$I_1=350\times 0.04\times 5=\ 70$

B) If p = $ 500, r = 3.5% = 0.035, t = 5 years,

Then the simple interest is,

$I_2=500\times 0.035\times 5=\ 87.5$

C) If p = $ 500, r = 4.25 % = 0.0425, t = 5 years,

Then the simple interest is,

$I_3=500\times 0.0425\times 5=\ 106.25$

∵ $I_3 < I_2 < I_1$

Hence, the accounts from least to greatest interest earned after 5 years.

C < B < A