At the end of 7 years, Tanner will have a total balance of approximately $3,101.29 in the two accounts.
For the first account with a principal of $1,100 and an annual interest rate of 3% compounded annually, we can use the compound interest formula:
Future Value (FV) = P * (1 + r)^n
where P is the principal, r is the annual interest rate (as a decimal), and n is the number of years.
FV1 = $1,100 * (1 + 0.03)^7
FV1 ≈ $1,100 * (1.03^7)
FV1 ≈ $1,100 * 1.22504
FV1 ≈ $1,347.54
For the second account with a principal of $1,150 and an annual interest rate of 7.5% simple interest, we can use the simple interest formula:
Future Value (FV) = P + P * r * n
where P is the principal, r is the annual interest rate (as a decimal), and n is the number of years.
FV2 = $1,150 + $1,150 * 0.075 * 7
FV2 = $1,150 + $1,150 * 0.525
FV2 = $1,150 + $603.75
FV2 ≈ $1,753.75
Now we add the future values of both accounts together:
Total Balance = FV1 + FV2
Total Balance ≈ $1,347.54 + $1,753.75
Total Balance ≈ $3,101.29