SOLUTION: someone invests (A) dollars in an account paying 8.6 percent simple interest, and (B) dollars in a account paying 6.5 percent interest compounded annually. After 6 years, the acco
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-> SOLUTION: someone invests (A) dollars in an account paying 8.6 percent simple interest, and (B) dollars in a account paying 6.5 percent interest compounded annually. After 6 years, the acco
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Question 1188461: someone invests (A) dollars in an account paying 8.6 percent simple interest, and (B) dollars in a account paying 6.5 percent interest compounded annually. After 6 years, the accounts have exactly the same balance. If (A = 5000), then what is (B)? Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! first account interest is prt=5000*0.086*6=$2580, so account total is $7580.
second account is 7580=(P)(1+0.065)^6=1.459P. don't round
P=7580/1.459, and the rounded value at the end=$5194.83
