gabriel deposits $2,500 into each of two savings accounts.\n\n* account i earns 4% annual simple…

gabriel deposits $2,500 into each of two savings accounts.\n\n* account i earns 4% annual simple interest.\n* account ii earns 4% interest compounded annually.\n\ngabriel does not make any additional deposits or withdrawals. what is the sum of the balances of account i and account ii at the end of 3 years?\n\nf $5,600.00\ng $5,612.16\nh $5,624.32\nj $5,200.00

gabriel deposits $2,500 into each of two savings accounts.\n\n* account i earns 4% annual simple interest.\n* account ii earns 4% interest compounded annually.\n\ngabriel does not make any additional deposits or withdrawals. what is the sum of the balances of account i and account ii at the end of 3 years?\n\nf $5,600.00\ng $5,612.16\nh $5,624.32\nj $5,200.00

Answer

Explanation:

Step1: Calculate Account I balance using simple interest

$$A_1 = P(1 + rt) = 2500(1 + 0.04 \times 3)$$

Step2: Evaluate Account I final balance

$$A_1 = 2500(1.12) = 2800$$

Step3: Calculate Account II balance using compound interest

$$A_2 = P(1 + r)^t = 2500(1 + 0.04)^3$$

Step4: Evaluate Account II final balance

$$A_2 = 2500(1.04)^3 = 2500(1.124864) = 2812.16$$

Step5: Sum the balances of both accounts

$$Total = A_1 + A_2 = 2800 + 2812.16$$

Step6: Final summation

$$Total = 5612.16$$

Answer:

G $5,612.16