Answer:
[tex]3\%\:interest=[/tex]$750
[tex]4\frac{1}{2}\%[/tex] interest=$1,125
Step-by-step explanation:
We use the formula [tex]I=P*R*T[/tex] to calculate simple interest.
For the first account the principal is P=$25,000
The rate is R=3%=0.03
The time is T=1 year
We substitute into the formula to get:
[tex]I=25,000*0.03*1[/tex]
This simplifies to [tex]I=750[/tex]
For the second account the principal is still P=$25,000
The rate is [tex]R=4\frac{1}{2}\%=0.045[/tex]
The time is T=1 year
We substitute into the formula to get:
[tex]I=25,000*0.045*1[/tex]
This simplifies to [tex]I=1125[/tex]
