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4. Nicolas has $650 to deposit into two separate accounts.

Nicolas will deposit $350 into Account I, which earns 3.5% simple annual interest

He will deposit $300 into Account II, which earns 3.25%
interest compounded annually

Nicolas will not make any additional deposits or withdrawals for
5 years.

a. Which account had a better return on investment?

b. What is the total amount of money Nicolas will have in both
accounts?

c. What is the difference between the interest earned on the
two accounts?

User Nooh
by
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1 Answer

6 votes

Which account had a better return on investment?

Account I.

What is the total amount of money Nicolas will have in both

accounts?

$822.12

What is the difference between the interest earned on the

two accounts?

$17.88

User Bongali Babu
by
8.0k points