Question

Gia opened two savings accounts at two different banks. One account earns an annual 3.4% simple interest, and the other earns half as much.

If she deposited $500 in each account, how much total interest will she have earned in 4 years?

Answer 1

Gia will earn a total of $102 in interest after 4 years by depositing $500 in each of her two savings accounts, one earning 3.4% annual simple interest and the other earning half as much.

Step-by-step explanation:

To calculate the total interest Gia will earn in 4 years, we need to determine the interest earned on each account and then add them together.

Let's start with the first account that earns 3.4% annual simple interest. After 4 years, the interest earned on this account would be:

$500 × 0.034 × 4 = $68

Now, let's calculate the interest earned on the second account that earns half as much, which is 1.7% annual simple interest. After 4 years, the interest earned on this account would be:

$500 × 0.017 × 4 = $34

To find the total interest, we add the interest earned on both accounts:

$68 + $34 = $102

Therefore, Gia will have earned a total of $102 in interest after 4 years.