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Item 7
James deposits $12,000 into each of two savings accounts.

Account I earns 2.2% interest compounded annually.
Account II earns 2.2% annual simple interest.
There are no additional deposits or withdrawals.
What is the sum of the balances of these accounts at the end of 7 years?


$27,168.00

$27,696.00

$27,822.53

$27,949.08

Respuesta :

niyh1111

Answer:

Step-by-step explanation:

x/12,000=2.2/100 so you multiply 12,000x2.2=26,400

then you divide 26,400 by the other 2.2=12,000

then u add 12,000+26,400=38,400

i think i messed up i would think it would be 27,822.53 but im not sure

The sum of the balances of these accounts at the end of 7 years is $27,822.54.

What is the sum of the balances of these accounts at the end of 7 years?

The balance in each account would be determined and added together.

The formula that can be used to determine the balance in the account that is compounded annually is:

FV = P (1 + r) nm

FV = Future value

P = Present value

R = interest rate

m = number of compounding

N = number of years

12,000 (1.022)^7 = $13,974.54

The formula that can be used to determine the balance in the account that earns a simple interest is: amount deposited + (amount deposited x time x interest rate)

12,000 = (12,000 x 0..022 x 7) = $13,848

$13,848 + $13,974.54 = $27,822.54

To learn more about future value, please check: https://brainly.com/question/18760477

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