Use the formulas for simple and compound interest, given by:
S.I = p·r·t
C.I = p(1 + r/100)^n - p
where:
S.I: simple intererst
C.I: compound inerest
p: initial investment = 2,500
r: anual rate = 4%
t: time = 3 year
replace the previousvalues into both formulas:
S.I = (2,500)(0.04)(3) = 300
C.I = (2500)(1 + 4/100)^3 - 2500 = 312.16
Hence, after the three years the balance for both saving account are:
2,500 + 300 = 2,800
2,500 + 312.16 = 2,812.16
their sum is:
2,800 + 2,812 = 5,612.16
Hence, the final balance account is $5,612.16