Question

Felicia has $350 to deposit into two different savings accounts. Felicia will deposit $200 into Account I, which earns 4.5% annual simple interest. She will deposit $150 into Account II, which earns 334% interest compounded annually. Felicia will not make any additional deposits or withdrawals. Which amount is closes to the total balance of these two accounts at the end of 6 years?

Answer 1

Total price after 6 years in Account I is :

`P _1=P_o+(P_ort)/(100)\\\\P_1=200+(200* 4.5 * 6)/(100)\\\\P_1=\$254`

Total price after 6 years in Account II is :

`P_2=P_o(1+(r)/(n))^(nt)\\\\P_2=150(1+(3.34)/(1))^(1* 6)\\\\P_2=\$1002373.64`

Total balance,
`T=P_1+P_2=1002373.64+254=\$1002627.64`

Hence, this is the required solution.