Respuesta :
Answer:
Step-by-step explanation:
Considering account I, we would apply the formula for determining compound interest which is expressed as
A = P(1 + r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
P = $1600
r = 2.75% = 2.75/100 = 0.0275
n = 1 because it was compounded once in a year.
t = 2 years
Therefore,
A = 1600(1 + 0.0275/12)^1 × 2
A = 1600(1.0275)^2
A = $1689.21
Considering account II, we would apply the formula for determining simple interest which is expressed as
I = PRT/100
Where
I represents interest paid on the investment.
P represents the principal or amount invested
R represents interest rate
T represents the duration of the investment in years.
From the information given,
P = 1600
R = 3.5
T = 2 years
I = (1600 × 3.5 × 2)/100 = $112
Total balance after 2 years is
112 + 1600 = $1712
the difference between the two accounts after 2 years is
1712 - 1689.21 = $22.79
Answer:
The correct answer is $22.79.
Step-by-step explanation:
Jamie deposits $1,600 into two different savings accounts.
Account I is compounded annually at an interest rate of 2.75%.
Time for the investment is 2 years.
Thus Amount in account I after two years time is
Principal × [tex](1 + \frac{interest rate}{100}) ^{time}[/tex] = 1600 × [tex]( 1 + \frac{2.75}{100} )^{2}[/tex] = $1689.21.
Account II is a simple interest investment with a 3 1/2% = 3.5% interest rate.
Time for the investment is 2 years.
Thus Amount in account II after two years time is
Principal + Principal × time × [tex]\frac{interest rate}{100}[/tex]= 1600 + 16 × 2 ×3.5 = 1600 + 112 = $1712
The difference between the two accounts after 2 years is
$ (1712 - 1689.21) = $22.79.
