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17 November, 05:55

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

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  1. 17 November, 09:44
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    Simple interest earned

    I=prt

    I=400*0.045*3=54

    Compound balance after 3 years

    A=p (1+r) ^t

    A=450 * (1+0.032) ^ (3) = 494.597

    Compound interest earned=494.597-450=44.597

    Total interest earned=54+44.597==98.597
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