Question

Jack has $15,000 to invest. If he invests two-thirds of it into a high-yield savings account with an annual interest rate of 8%, compound continuously, and the other third in a regular savings account at 6% simple interest, how much does Jack earn after one year?

Answer 1

Based on the amounts that Jack invested into the different investment vehicles, the amount Jack earns a year would be $1,132.87.

How much does Jack earn from the high-yield savings account?

The amount invested is:

= 2 / 3 x 15,000

= $10,000

Amount after a year:

= Amount x e ^ (rate x time)

= 10,000 x e ⁰.⁰⁸ ˣ ¹

= $10,832.87

How much does Jack make from the regular savings account?

Amount invested:

= 1/3 x 15,000

= $5,000

Amount after a year:

= 5,000 x (1 + 6%)

= $5,300

How much did Jack earn in a year:

= (10,832.87 + 5,300) - 15,000

= $1,132.87

#SPJ1

Find out more on continious compounding at https://brainly.com/question/3932907.