First Oak Eagle View 6% Simple 8.5% Simple River Point 2% Compounded Annually West United 5% Compounded Annually Giovanna deposited 5 1 1269.5 $1600 into two different savings accounts. She deposited half of the 2 77.27 money at First Oak and the other half at West United. 3 23547.5 How much interest will she have earned from both accounts at the end of 4 87.84 5 years? (Round to the nearest cent) 5years

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celldura666 celldura666 · Answer 1 · 2024-04-10T03:57:08+02:00

Answer:

Step-by-step explanation:

To calculate the interest earned from both accounts, we need to determine the interest earned from each account separately and then sum them up.

Let's calculate the interest earned from each account:

1. First Oak:

Principal amount = 1/2 * $1629.5 = $814.75

Interest rate = 6%

Time = 5 years

Interest earned from First Oak = Principal amount * Interest rate * Time

= $814.75 * 0.06 * 5

= $244.425

2. West United:

Principal amount = 1/2 * $1629.5 = $814.75

Interest rate = 5% compounded annually

Time = 5 years

Use the compound interest formula to calculate the interest earned from West United:

Interest earned from West United = Principal amount * (1 + Interest rate)^Time - Principal amount

= $814.75 * (1 + 0.05)^5 - $814.75

= $814.75 * (1.05)^5 - $814.75

= $814.75 * 1.27628 - $814.75

= $1041.36 - $814.75

= $226.61

Now, sum up the interest earned from both accounts:

Total interest earned = Interest earned from First Oak + Interest earned from West United

= $244.425 + $226.61

= $471.035

Therefore, Giovanna will have earned approximately $471.04 in interest from both accounts at the end of 5 years.