Mathematics High School

Sasha has $850 to deposit into two accounts.

Sasha will deposit $450 at First Oak Bank.

She will deposit the rest at River Point Bank.

Sasha will not make additional deposits or withdrawals.
How much more money will be in her account at First Oak Bank than at River Point after 2 years?

Answers

Answer 1
Since in Interest is not stated there will be no interest.This equation can be expressed as:
850=450+x
850-450=x
400=x
Sasha deposits $400 at River Point bank.
She will have $50 more in First oak bank (without interest).
Answer 2

Amount in First Oak Bank is $87.84 than at River Point after 2 years.

What is Simple Interest and Compound Interest?

Simple interest is the interest obtained over the principal amount on a certain rate.

Compound interest is the amount of interest which is calculated on the principal amount as well as the amount accumulated over the previous period.

First oak bank is simple with 6% interest.

Final amount in simple interest, A = P(1 + rt), where P is the principal amount , r is the interest rate and t is the number of years.

A = 450 (1 + (0.06 × 2)) = $504

River point bank is 2% compounded annually

Final amount in compound interest, A = P(1 + r/n)^(nt), where, P is the principal amount, r is the interest rate, t is the number of years and n is the number of times interest compounded annually.

P = 850 - 450 = 400

n = 1, since compounding is only 1 time in a year

A = 400(1 + 0.02)² = $416.16

Amount which is more in First oak is $504 - $416.16 = $87.84

Hence the amount more in the First oak account is $87.84.

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The complete question is given below.

Sasha Has $850 To Deposit Into Two Accounts. Sasha Will Deposit $450 At First Oak Bank.She Will Deposit

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Answers

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Answers

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