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Roberto deposits $3,000 into 2 different savings accounts.
• $2,200 into Account I, which earns 1.75% annual simple interest.
• $800 into Account II, which earns 1.25% interest compounded annually.
Roberto will not make additional deposits or withdrawals.
Which amount is the closest to the total balance at the end of 4 years?

Respuesta :

The total balance of the amount of money deposited into the account at the end of 4 years is $3194.76.

What is the total balance?

Simple interest rate is the interest that is paid only on the principal portion of  the amount deposited. Compound interest is when interest is earned on the amount deposited and the interest accrued.

Compound value = amount deposited x (1 + interest rate) ^number of years

800(1.0125)^4 = $840.76

Future value of the account with simple interest = amount deposited + (principal x time x interest rate)

2200 + (2200 x 0.0175 x4) = $2354

Total value = 2354 + 840.76 = $3194.76

To learn more about compound interest, please check: https://brainly.com/question/26367706

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