Question

An account with $600 earns 4% simple interest per year. The next year all the money is put into a new account that earns 4.5% simple interest per year. How much money does the account have at the end of the second year? Explain.

Answer 1

[First Year]
$600 • 0.04 • 1 year
600 • 0.04 = 24 • 1 = 24

[Second Year]
$600 • 0.045 • 1 year
600 • 0.045 = 27 • 1 = 27

24 + 27 = $51

I believe this is correct and I hope this helps! :)

Answer 2

Answer:

The account will have $51 at the end of the second year.