Lester deposited $400 into a savings

account earning 4.5% simple interest, and
$450 into an investment account earning
3.2% interest compounded annually. What
was the total interest he earned in 3 years?

A $986.00
B $89.06
C $9.60
D $98.60

Opps, it is wrong. This said simple interest, not compounded.

try
totalINTEREST= 400( .045)x3 + 450(.032)x3

interest from simple interest = 400(.045)(3) = 54

interest fromt he compound account
= 450(1.032)^3 - 450 = 44.60

total interest = 54 + 44.60 = 98.60 , which is D

Yeah it gave me D. I did both the simple and compound interest and then added them to get my answer. Thanks!!!

what is

totalINTEREST= 400( 1.045)^3 + 450( 1.032)^3 -400-450

put this in your google search window
400( 1.045)^3 + 450( 1.032)^3 - 850=

To find the total interest earned, we need to calculate the interest earned on each account separately and then add them together.

First, let's calculate the simple interest earned on the savings account. The formula for simple interest is:

Simple Interest = Principal x Rate x Time

In this case, the principal (P) is $400, the rate (R) is 4.5% (expressed as a decimal, so 4.5/100 = 0.045), and the time (T) is 3 years. Plugging in these values into the formula:

Simple Interest = 400 x 0.045 x 3 = $54

So, Lester earned $54 in simple interest on the savings account.

Next, let's calculate the compound interest earned on the investment account. The formula for compound interest is:

Compound Interest = Principal x (1 + Rate)^Time - Principal

In this case, the principal (P) is $450, the rate (R) is 3.2% (expressed as a decimal, so 3.2/100 = 0.032), and the time (T) is 3 years. Plugging in these values into the formula:

Compound Interest = 450 x (1 + 0.032)^3 - 450 = $35.06

So, Lester earned $35.06 in compound interest on the investment account.

Finally, let's calculate the total interest earned by adding the simple interest and the compound interest together:

Total Interest = $54 + $35.06 = $89.06

Therefore, the correct answer is B) $89.06.

It gives me 101.06. That's not in the answer options...