Problema Solution
At a local bank, the simple interest rate on a savings account is 3% higher than the interest rate for a checking account. After one year, a deposit in the checking account would earn interest of $50, whereas the same deposit would earn interest of $100 in the savings account. Find the interest rate on each account.
Answer provided by our tutors
let simple interest on checking account is x%, then that on saving account is (x+3)%
interest in checking account is $50.
let deposit be P
then 50 = P*x/100*1
==> P = 5000/x
and interest in savings account is $100.
==> 100 = P(x+3)/100*1
==> 100000 = (5000/x)*(x+3)
==> 2x = x+3
==> x=3
HEnce, interest rate in checking account is 3% and in savings account is 6%.