Answer:
The correct Option is Option A
Account B because the principal of Account B is $300 and the principal for Account A is $150
Step-by-step explanation:
Interest earned from Account A = $ 4.50
Interest earned from Account B = $22.50
Time t = 18 months
Interest rate for Account A = 2%
Interest rate for Account B = 5%
We need to find which account has greater principal
The formula used to calculate principal is: [tex]Interest=Principal\times r \times t[/tex]
where r is rate and t is time
Finding Principal for Account A:
Interest earned from Account A = $ 4.50
Time t = 18 months = 1.5 years
Interest rate for Account A = 2% = 0.02
Putting values and finding Principal
[tex]Interest=Principal\times r \times t\\4.50=Principal\times0.02\times1.5\\Principal=\frac{4.50}{0.02\times1.5} \\Principal=\frac{4.50}{0.03} \\Principal=150[/tex]
So, The Principal Amount for Account A = $150
Finding Principal for Account B:
Interest earned from Account B = $ 22.50
Time t = 18 months = 1.5 years
Interest rate for Account A = 5% = 0.05
Putting values and finding Principal
[tex]Interest=Principal\times r \times t\\22.50=Principal\times0.05\times1.5\\Principal=\frac{22.50}{0.05\times1.5} \\Principal=\frac{22.50}{0.075} \\Principal=300[/tex]
So, The Principal Amount for Account B = $300
So, the correct Option is Option A
Account B because the principal of Account B is $300 and the principal for Account A is $150
