i need help

Question

Philip invested a total of $2,000 into two savings accountsOne account paid 3% yearly interest, and the other account paid 4% yearly interest.Show why or why not Philip could earn $100 in interest after one year? Give an explanation of your answer

Answer 1

Ruth,

 

A = P (1+i)^t 

I = A-P

Where A is the accumulated value (or future value), P is the amount invested, i is the interest rate and t is time.

In this case

P = 2000

i = .03 or .04

t = 1

 

at 3%

A = 2000(1.03) = 2060

I = 2060 - 2000 = 60 

 

at 4%
A = 2000(1.04) = 2080
I = 2080 - 2000 = 80

 

Philip cannot earn $100 under either scenario.