Question

PLZZ HELP I AM GOING TO FAIL ( THIS WORTH 29 POINTS)

Kwame and Karen both deposited $2 000 in separate savings accounts.


Kwame's bank pays 3.1% simple interest.

Karen's bank pays 2.7% interest compounded annually.


What will be the combined balance of their accounts after 4 years?

Answer 1

2248+2224.91= 4472.91

Explanation:

A = $2,248.00

I = A - P = $248.00

Equation:

A = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 3.1%/100 = 0.031 per year.

Solving our equation:

A = 2000(1 + (0.031 × 4)) = 2248

A = $2,248.00

The total amount accrued, principal plus interest, from simple interest on a principal of $2,000.00 at a rate of 3.1% per year for 4 years is $2,248.00.

A = $2,224.91

A = P + I where

P (principal) = $2,000.00

I (interest) = $224.91

Calculation Steps:

First, convert R as a percent to r as a decimal

r = R/100

r = 2.7/100

r = 0.027 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 2,000.00(1 + 0.027/1)(1)(4)

A = 2,000.00(1 + 0.027)(4)

A = $2,224.91

Summary:

The total amount accrued, principal plus interest, with compound interest on a principal of $2,000.00 at a rate of 2.7% per year compounded 1 times per year over 4 years is $2,224.91.