Respuesta :
Answer:
Account B will generate 1.6 times as much interest as Account A assuming initial investment values are equal
Explanation:
Annual interest is determined by multiplying the principle amount by the interest rate. In this case, if amount X is deposited in account A and amount Y is deposited in account B, the interest generated in each account will be:
[tex]Account A = X*5\% = 0.05X[/tex]
[tex]Account B = Y*8\% = 0.08Y[/tex]
As absolute values of investment are not specified, exact difference in amount of interest cannot be determined. However, ratios can calculated.
[tex]\frac{Account B}{Account A} = \frac{0.08Y}{0.05X}[/tex]
If it can be assumed that the investment in both accounts is equal (X = Y), the equation can be simplified as below:
[tex]\frac{Account B}{Account A} = \frac{0.08Y}{0.05Y}[/tex]
[tex]\frac{Account B}{Account A} = 1.6[/tex]
Thus, Account B will generate 1.6 times more interest than Account A
