Question

Sasha has $850 todeposit into twoaccounts.Sasha will deposit $450at First Oak Bank.She will deposit the restinto River Point Bank.Sasha will not make additionaldeposits or withdrawals.How much more money will bein her account at First Oak thanat River Point after 2 years?

Answer 1

Given

Sasha has $850 to deposit into two accounts.

Sasha will deposit $450 at First Oak Bank.

She will deposit the rest into River Point Bank.

Sasha will not make additional deposits or withdrawals.

To find how much more money will be in her account at First Oak than at River Point after 2 years.

Now,

It is given that,

In the first Oak bank the rate of interest is 6%.

Then, the amount in her account after 2 years is,

`\begin{gathered} A=P+(Pnr)/(100) \\ A=450+(450*2*6)/(100) \\ A=450+54 \\ A=454 \end{gathered}`

Hence, the amount in the First Oak bank is $454.

In the River point bank the rate of interest is 2% compounded annually.

Then, the amount in her account after 2 years is,

`\begin{gathered} A=P(1+(r)/(100))^t \\ A=P(1+(2)/(100))^2 \end{gathered}`

Since Sasha will deposit $450 at First Oak Bank and she will deposit the rest into River Point Bank.

Then, the amount deosited in the River point bank is,

`\begin{gathered} P=850-450 \\ =400 \end{gathered}`

Therefore,