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tatuchka [14]
3 years ago
8

Gary deposits $1,500 into each of two savings accounts. Account I earns 5% annual simple interest. Account II earns 5% interest

compounded annually. Gary 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 4 years?
Mathematics
1 answer:
hodyreva [135]3 years ago
7 0

Answer:

  • $3623.26

Step-by-step explanation:

<u>Given</u>

  • Each deposit = $1500
  • Interest rate= 5%
  • Time = 4 years
  • Compound number = annual

<u>Simple interest account</u>

  • B = 1500*(1 + 4*0.05) = 1500*1.2 = $1800

<u>Compound interest account</u>

  • B = 1500*(1 + 0.05)^4 = $1823.26

<u>Total balance</u>

  • $1800 + $1823.26 = $3623.26

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