Question

A bank offers three different savings accounts as shown. Beth and Reena opened Basic Savings accounts on the same day. Reena's initial deposit was twice as much as Beth's. After 5 years, their combined interest earned was $21.00. What was the amount of Reena's initial deposit?

Answer 1

To find the amount of Reena's initial deposit, you can set up an equation using the given information. After solving the equation, you will find that Reena's initial deposit is $56.00.

Step-by-step explanation:

To find the amount of Reena's initial deposit, we can set up an equation using the given information. Let's assume Beth's initial deposit is x dollars. Reena's initial deposit will then be 2x dollars. After 5 years, Beth's account will accumulate interest of 0.05x(5) dollars, and Reena's account will accumulate interest of 0.05(2x)(5) dollars.

According to the problem, their combined interest after 5 years is $21.00. So, we can write the equation: 0.05x(5) + 0.05(2x)(5) = 21.00

Simplifying the equation, we get 0.25x + 0.5x = 21.00. Combining like terms, we get 0.75x = 21.00. Dividing both sides of the equation by 0.75, we find that x, the amount of Beth's initial deposit, is $28.00.

Therefore, Reena's initial deposit, which is twice as much as Beth's, is 2($28.00) = $56.00.