SOLUTION: . Jose deposits splits $5,000 evenly into 2 savings accounts.
• Account 1 is safer investment and earns on average 4% simple interest.
• Account 2 is riskier but earns on ave
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-> SOLUTION: . Jose deposits splits $5,000 evenly into 2 savings accounts.
• Account 1 is safer investment and earns on average 4% simple interest.
• Account 2 is riskier but earns on ave
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Question 1154265: . Jose deposits splits $5,000 evenly into 2 savings accounts.
• Account 1 is safer investment and earns on average 4% simple interest.
• Account 2 is riskier but earns on average 3.5% compounded annually.
What are the amounts each account will earn at the end of 3 years in no additional deposits or
withdrawals are made?
Account 1_______________$2800
Account 2_______________$2771.79
Were you surprised by which account earned more?
And One More
Imagine you have invested $800 into a savings account that earns 3.5% interest
compounded annually. What is the balance of your account after 5 years without more
deposits or withdrawals?
