Five years ago, you saved $5,000 in bank A that pays a compounding interest rate. You also saved $5,000 in bank B that pays a simple interest rate. Both accounts have $8,000 now. How much will you have in the two accounts at the end of year 5? The account balance in bank A will be $11,000. The account balance in bank B will be $11,000. The account balance in bank A will be $12,800. The account balance in bank B will be $11,000. The account balance in bank A will be $11,000. The account balance in bank B will be $12,800.

Simple Interest rateA = P * (1 + rt)A=final amountp=Present valuer=Interest rateT=time (in…

ive years ago, you saved $5,000 in bank A that pays a compounding interest rate. You also saved $5,000 in bank B that pays a simple interest rate. Both accounts have $8,000 now. How much will you have in the two accounts at the end of year 5?

ive years ago, you saved $5,000 in bank A that pays a compounding interest rate. You also saved $5,000 in bank B that pays a simple interest rate. Both accounts have $8,000 now. How much will you have in the two accounts at the end of year 5?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Five years ago, you saved $5,000 in bank A that pays a compounding interest rate. You also saved $5,000 in bank B that pays a simple interest rate. Both accounts have $8,000 now. How much will you have in the two accounts at the end of year 5?

		The account balance in bank A will be $11,000. The account balance in bank B will be $11,000.
		The account balance in bank A will be $12,800. The account balance in bank B will be $11,000.
		The account balance in bank A will be $11,000. The account balance in bank B will be $12,800.

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