Another bank offers a different savings rate. If an account with $400 earns interest of $6, how much interest is earned by an account with $1800?
Just use a simple ratio equation
x/6 = 1800/400
x = 27
or
rate for the account = 6/400 = .015
so for the $1800 , interest = .015(1800) = 27
To find out how much interest is earned by an account with $1800, we need to determine the interest rate first.
Given that an account with $400 earns interest of $6, we can calculate the interest rate using the formula:
Interest Rate = (Interest Earned / Principal Amount) * 100
Substituting the values, we have:
Interest Rate = ($6 / $400) * 100
Interest Rate = 1.5% per annum
Now we can use the interest rate to calculate the interest earned by an account with $1800.
Interest Earned = (Principal Amount * Interest Rate) / 100
Substituting the values, we have:
Interest Earned = ($1800 * 1.5) / 100
Interest Earned = $27
Therefore, an account with $1800 would earn $27 in interest.
To find out how much interest is earned by an account with $1800, we can calculate the interest using the interest rate and the principle amount.
Let's first calculate the interest rate by finding the rate at which the $400 account earns $6 in interest:
Interest Rate = (Interest Earned / Principle Amount) * 100
= (6 / 400) * 100
= 1.5%
Now that we have the interest rate, we can determine the interest earned by the account with $1800:
Interest Earned = (Interest Rate / 100) * Principle Amount
= (1.5 / 100) * 1800
= $27
Therefore, an account with $1800 would earn $27 in interest.