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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.

AWhich account has a greater principal?

Question 2

How much greater is the principal? $


Question 3

BWhich account has a greater annual interest rate?

Question 4

How much greater is the annual interest rate?

%

Verified Answer :

scme1702

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%.

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