Question

Anna opens two savings accounts at the beginning of the year. She deposits $5,000 in an account that earns 2% interest each year. She deposits $10,000 in a second account that earns 2.5% interest each year. If she makes no withdrawals or deposits, what will be the sum of the interest she earns from her first account (a) and second account (b) by the wnd of the year?

Answer 1

As we know she wont be depositing or withdrawing that means that the total money remaining in the bank would be static and would just add up the interest their is.

SO 2 per cent of 5000 is 100 $. So she will earn a 100 $ from her first account.

And 2.5 % from 10000 is around 250 $ so she earn a total of 250 $ from her second account.

Now adding up the complete money that she will earn at the end of the year would be around 350 $.