104k views
1 vote
13 Hannah deposits $3,000 into each of two

savings accounts.
• Account I earns 4% annual simple
interest.
• Account II earns 4% interest
compounded annually.
Hannah does not make any additional
deposits or withdrawals. What is the sum
of the balances of Account I and Account
II at the end of 2 years?

User Tarasov
by
4.4k points

1 Answer

2 votes

9514 1404 393

Answer:

$6484.80

Explanation:

Account I:

The balance in the account after 2 years will be ...

A = P(1 +rt)

A = $3000(1 +0.04(2)) = $3240

__

Account II:

The balance in the account after 2 years will be ...

A = P(1 +r)^t

A = $3000(1 +0.04)^2 = $3244.80

__

The sum of the two balances after 2 years is ...

$3240 +3244.80 = $6484.80

User Opello
by
4.6k points