You place $4,000.00 in a bank account with an interest rate of 5.25% apr and another $2,000.00 in an account with an interest rate of 6.00% apr. after 6 months, which account will have earned the most interest?

Hello there! The formula for simple interest is prt, meaning you multiply the principal (initial amount) by the rate (simple interest rate) by the time (could be in months or years). You convert the rate into decimal form, so if the interest rate is 6.5%, the decimal is 0.065 or if the interest rate is 4%, the decimal is 0.04. In terms of time, we're looking for the interest after 6 months. In this case, we multiply by a decimal. There are 12 months in 1 year and 6 months is 1/2 a year, so you would multiply by 0.5. We'll say that the account with $4,000 is Account A and that the aAcount with $2,000 is account B. With that being said, if you do this correctly, here is the simple interest for the accounts.

Account A: $105
Account B: $60

After 6 months, Account A will have earned the most interest.

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