Ask Question
4 January, 17:47

Linda deposits $1,800 into an account that pays 7.5% interest, compounded annually. Anna deposits $4,000 into an account that pays 5% interest, compounded annually. If no additional deposits are made to either account, what is the balance of each at the end of 10 years? (to the nearest dollar)

A) Linda's account: $3,710

Anna's account: $6,516

B) Linda's account: $2,315

Anna's account: $5,860

C) Linda's account: $2,647

Anna's account: $6,102

D) Linda's account: $3,150

Anna's account: $4,200

+3
Answers (1)
  1. 4 January, 21:47
    0
    A is your answer because Since the interest is compounded annually, the balances grow exponentially.

    , A = P (1 + r/n) nt

    Linda = 1800 (1 + 0.075) 10 = ≈ $3,710

    Anna = 4000 (1 + 0.05) 10 = ≈ $6,516
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Linda deposits $1,800 into an account that pays 7.5% interest, compounded annually. Anna deposits $4,000 into an account that pays 5% ...” in 📘 Mathematics if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers