document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=437937>Question 437937</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You invest $1,000.00 in one account and $3,000.00 in another account. Both accounts have the same interest rate over the same amount of time. How will the interest earned compare? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #302944 by </B><A HREF=/tutors/aboutme.mpl?userid=htmentor><B>htmentor(1343)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=htmentor><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=htmentor><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=302944\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> In both cases, the amount of interest earned will be proportional to the principal.  <BR>\n" );
document.write( "In general, the interest is given by the formula<BR>\n" );
document.write( "I = P((1+r)^n - 1), where P is the original principal, r is the interest rate, and t the term<BR>\n" );
document.write( "Since r and n are the same, we can write<BR>\n" );
document.write( "I = k*P, where k=constant<BR>\n" );
document.write( "One account starts with $1000, so <BR>\n" );
document.write( "I1 = 1000*k<BR>\n" );
document.write( "The other account starts with $3000, so<BR>\n" );
document.write( "I2 = 3000*k<BR>\n" );
document.write( "The ratio of the interest earned is 3:1 </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );