Question

The amount of simple interest accrued on a sum of money varies jointly with the amount of money, the interest rate, and the time the money is invested. A sum of money is invested at 4% for 3 years and accrues $168 in interest. The same sum of money is invested in a second account at 6% for 4 years. Which statement is true?

Which is the answer?

A )The amount of interest accrued on the second account is less than double the amount of interest accrued on the first account.

B )The amount of interest accrued on the second account is double the amount of interest accrued on the first account.

C ) The amount of interest accrued on the second account is more than double but less than triple the interest on the first account.

D ) The amount of interest accrued on the second account is more than triple the interest accrued on the first account.

Answer 1

D is your correct answer.

Answer 2

Answer:

B )The amount of interest accrued on the second account is double the amount of interest accrued on the first account.

Step-by-step explanation:

A sum of money is invested at 4% for 3 years and accrues $168 in interest.

Lets find the principle.

The formula for simple interest is =

$I=\frac{p\times r\times t}{100}$

p = ?

i = 168

r = 4%

t = 3

Now putting these values in the formula;

$168=\frac{p\times4\times3}{100}$

$16800=12p$

p = $1400

The same sum of money is invested in a second account at 6% for 4 years.

So, interest will be =

$I=\frac{1400\times6\times4}{100}$

I = $336

Difference between both interests = $336-168=168$ dollars

We can see, that the second account gives double amount of $168.

Now, the true statement is :

B )The amount of interest accrued on the second account is double the amount of interest accrued on the first account.