Answer :
Answer:
The first one.
Step-by-step explanation:
Lets calculate the interest after one year.
1) 500 * (1.04) = 520
2) 600 * (1.025) = 615.
As you can tell the first one earned 20 dollars in the first year while the second one earned 15 dollars in the same year. This means that the first one has earned more interest.
Hope this helps.
The savings account that earned the most interest after one year is savings account A.
What is compound interest?
Compound interest is the interest on a loan or deposit calculated based on the initial principal and the accumulated interest from the previous period.
We know that the compound interest is given as
A = P(1 + r)ⁿ
Where A is the amount, P is the initial amount, r is the rate of interest, and n is the number of years.
Savings account A has $500 and pays 4% interest yearly.
Then the interest earned by account A will be
A = $500 × 1.04
A = $520
Savings account B has $600 and pays 2.5% interest yearly.
Then the interest earned by account B will be
A = 600 × 1.025
A = 615
Then the interest gain by account A and account B will be $20 and $15.
The savings account that earned the most interest after one year is savings account A.
More about the compound interest link is given below.
https://brainly.com/question/25857212
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