17. desirae deposits $2,200 into two differen...
17. desirae deposits $2,200 into two different savings accounts. • account a earns 22% compounded interest annually • account b earns 3.7% simple interest after 3 years, what will the difference in the accounts be? a. $108.15 b. $2,345.20 c. $2,453.35 d. $3,300.00
Answer
# Explanation:
## Step1: Calculate amount in Account A
Use compound - interest formula $A = P(1 + r)^t$, where $P=\$2200$, $r = 0.22$, and $t = 3$.
$A_A=2200\times(1 + 0.22)^3=2200\times1.22^3=2200\times1.815848=\$3994.8656$
## Step2: Calculate amount in Account B
Use simple - interest formula $A = P(1+rt)$, where $P = 2200$, $r=0.037$, and $t = 3$.
$A_B=2200\times(1+0.037\times3)=2200\times(1 + 0.111)=2200\times1.111=\$2444.2$
## Step3: Calculate the difference
$D=A_A - A_B=3994.8656-2444.2=\$1550.6656$
It seems there is an error in the problem setup or answer choices as the calculated value doesn't match any of the given options. But if we assume the problem is set up correctly and we made no calculation errors, we follow the steps as above. If we consider the closest value among the options, we note that there may be some rounding differences in the problem - creation process. However, based on the correct mathematical calculations:
# Answer:
None of the above (but if we had to choose the closest one, there is an issue with the problem as the calculated value is far from the options)