Question

Darla the Darling Dot Dudette has $400 to deposit in two different savings accounts. 1. She deposits $300 into Account 1, which earns 4.5% annual simple interest. 2. She deposits $100 into Account 2, which earns 3% interest compounded annually. She does not make any additional deposits or withdrawals. What will be the total balance of these 2 accounts at the end of 3 years? *

NEED NOW PLEASE

Answer 1

$449.77

Explanation:

The balance in account 1 can be found using the simple interest formula.

A = P(1 +rt)

A = $300(1 +0.045·3) = $340.50

The balance for account 2 can be found using the compound interest formula.

A = P(1 +r)^t

A = $100(1.03)^3 = $109.27

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Darla's total balance will be ...

$340.50 +109.27 = $449.77