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hammer [34]
3 years ago
5

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 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:
OLga [1]3 years ago
4 0

account 1:

$400 * 0.035 * 2 = $28

$28 interest earned so total = $400 + $28 = $428

account 2:

<span>A = P(1+r/n)^(nt)</span>

= $250(1+0.035)^2 = 267.50

total account 1 and account 2 =

$428 + $267.81 = $695.50

answer is B $695.00


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