Gia opened two savings accounts at two different banks. One account earns an annual 3.4% simple interest and the other earns half as much. If she deposited $500 in each account how much total will she have earned in 4 years show your answerer
Accepted Solution
A:
Hey. Let me help you on this one.
In this problem, we will be needing to calculate values for two different banks with different interest rates. We will need to add both of these values together to find out the total amount of money Gia has. We will also need to find the percentage increase by using the percentage decimal form.
First, let's form two expressions which we can later solve. First account earns an annual 3.4% interest, and the second one earns half of that.
[tex] \frac{3.4}{2} = 1.7[/tex]
Now that we know the interest rate for both banks (first, and second), we can form an expression for all of them. Before we do this; however, let's find the percentage increase for the banks.
First bank: [tex]3.4*4=13.6[/tex] Second bank: [tex]1.7*4=6.8[/tex]
Let's form expressions for the banks, now. In order for us to find a certain percentage, we can take the percent in the decimal form, and move the decimal point two spaces to the left.
First bank: [tex]500*0.136=68[/tex] Second bank: [tex]500*0.068=34[/tex]
Now, let's add the values together.
[tex]68+34=102[/tex]
Done. We now have our answer. I will be attaching the image that will help you understand what has been done to solve this problem. It should help you on your studies.