Answer:
$15,334.37
Explanation:
Lancelot deposited $5000 each into 2 different savings accounts.
Step 1- For simple Interest
Amount of money in the account
Account A earns 8% simple interest.
Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 8%/100 = 0.08 per year.
Solving our equation:
A = 5000(1 + (0.08 × 6)) = 7400
A = $7,400.00
Step 2- For Compounded Interest
Account B earns 8% interest compounded annually.
First, convert R as a percent to r as a decimal
r = R/100
r = 8/100
r = 0.08 rate per year,
Then solve the equation for A
A = P(1 + r/n)nt
A = 5,000.00(1 + 0.08/1)(1)(6)
A = 5,000.00(1 + 0.08)(6)
A = $7,934.37
The sum of the balances of both accounts at the end of 6 years is calculated as:
$7,934.37 + $7,400.00
=$15,334.37