Emma is saving money for college. She has $800 and wants to deposit it into 2 different savings accounts. She decides to deposit $500.00 into an account, Account I, which earns 2.5% annual simple interest. She will then deposit $300 into an account, Account II, which earns 2 1/4% interest compounded annually.

Question

Emma is saving money for college. She has $800 and wants to deposit it into 2 different savings accounts. She decides to deposit $500.00 into an account, Account I, which earns 2.5% annual simple interest. She will then deposit $300 into an account, Account II, which earns 2 1/4% interest compounded annually.

If Emma makes no other deposits or withdrawals, what is the total amount of money she will have at the end of 3 years?
Note, show your answer and all steps needed to complete.

i seriously need help the question is due soon. :,)

Answer 1

2 years later still no help, bum

Answer 2

just use your interest formulas. Her balance will be

500(1 + 0.025*3) + 300(1 + 0.225)^3

Answer 3

Hi! I am very bad at this. I see your answer but is there anyway you can explain how you got that?

Answer 4

Use interest formulas, as oobleck said.

https://www.google.com/search?q=interest+formulas&oq=interest+formulas&aqs=chrome..69i57.3649j0j7&sourceid=chrome&ie=UTF-8

Answer 5

To find the total amount of money Emma will have at the end of 3 years, we need to calculate the amount of interest earned from each account and add it to the initial deposit.

Let's start with Account I, which earns 2.5% annual simple interest. Simple interest is calculated using the formula:

Interest = Principal (initial deposit) * Rate * Time

For Account I:
Principal = $500.00
Rate = 2.5% = 0.025 (in decimal form)
Time = 3 years

Interest (Account I) = $500.00 * 0.025 * 3 = $37.50

Now let's move on to Account II, which earns 2 1/4% interest compounded annually. Compound interest is calculated using the formula:

A = P (1 + r/n)^(n*t)

Where:
A = Final amount
P = Principal (initial deposit)
r = Annual interest rate (in decimal form)
n = Number of times interest is compounded per year
t = Number of years

For Account II:
Principal = $300.00
Rate = 2 1/4% = 2.25% = 0.0225 (in decimal form)
Compounding frequency = annually
Time = 3 years

A (Account II) = $300 * (1 + 0.0225/1)^(1*3) = $300 * 1.0225^3 ≈ $300 * 1.06818 ≈ $320.45

Now, we can calculate the total amount Emma will have:

Total amount = Initial deposit + Interest Account I + Amount Account II
= $800 + $37.50 + $320.45
= $1157.95

Therefore, Emma will have approximately $1157.95 at the end of 3 years if she makes no other deposits or withdrawals.

Remember to double-check all the calculations to ensure accuracy.