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madam [21]
3 years ago
13

Nicolas has $650 to deposit into two different savings accounts. • Nicolas will deposit $400 into Account I, which earns 3.5% an

nual simple interest. • He will deposit $250 into Account II, which earns 3.25 interest compounded annually. Nicolas will not make any additional deposits or withdrawals. Which amount is closest to the total balance of these two accounts at the end of 2 years? A $672.13 B $695.00 C $694.25 D $694.51 Mathematics
Mathematics
1 answer:
Alinara [238K]3 years ago
5 0
C) $694.25

Why?
Because you want to times the interest by 2 (1 is for one year but u want to find the amount after two years) then you multiply the amount given to each bank separately so:

400*0.07 (7% which is 7/100) = 28
250*0.065 (6.5% which is 65/1000) = 16.25

Then u add the interests together:
28+16.25 = 44.25

Finally you add that to the amount you started with:
$650+$44.25= $694.25
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