Question

Michael is going to invest $15,000 into two savings accounts to save money to buy a house.

Bank of Texas account will earn 6.75% in simple interest.
United Texas Bank will earn 8% in simple interest.
What is the sum of the interest the two accounts will earn at the end of 5 years?

Answer 1

Bank of Texas = $10,031.35

United Texas Bank = $10,500.00

Explanation:

Bank of Texas

A=P(1+rt)

P=$7,500

r=6.75%

t=5 years

$10,031.35

refer the pic

United Texas Bank

A=P(1+rt)

P=$7,500

r=8%

t=5 years

$10,500.00

refer the sec pic