Question

Neal deposits $340 into each of two savings accounts.

Account One earns 6% annual simple interest.
Account II earns 5% interest compounded annually.
Neal does not make any additional deposits or withdrawals. What is the sum of the balances of Account one and Account II at the end of 3 years?

Answer 1

Account I: 61,2

Account II: 51

Explanation:

6% 340 = 21,4

5% 340 = 17

21,4 . 3 = 61,2

17. 3 = 51