Question

Jackie wants to split his $12,000 investment between two compound interest accounts. He puts $4500 into an account paying 12 percent and the rest into an account paying 8%. If the money if left untouched, how much will he have (total of both accounts) after 18 years?

Answer 1

A=p(1+r)^t
A=4,500×(1+0.12)^(18)+7,500×(1+0.08)^(18)
A=64,574.99