Question

You place $4,000.00 in a bank account with an interest rate of 5.25% and another $2,000.00 in an account with an interest rate of 6.00%.

A. After 1 year, the total interest is $345.00.
B. After 1 year, the total interest is $345.50.
C. After 1 year, the total interest is $345.75.
D. After 1 year, the total interest is $346.00.

Answer 1

The total interest after 1 year is $330.00.

Step-by-step explanation:

To find the total amount of interest, we need to calculate the interest earned on each account separately and then add them together. For the $4,000.00 account with an interest rate of 5.25%, the interest earned after 1 year is $210.00 (4000 * 0.0525 = 210.00). For the $2,000.00 account with an interest rate of 6.00%, the interest earned after 1 year is $120.00 (2000 * 0.06 = 120.00). Adding the two amounts together, the total interest after 1 year is $330.00. Therefore, option A is the correct answer.