Respuesta :
Answer:
The total gain at the end of the second year for both accounts combined is $509.09.
Step-by-step explanation:
Amount saved = $8500
40% of 8500 is saved in saving account; [tex]0.4\times8500=3400[/tex]
Remainder amount in stock plan; [tex]8500-3400=5100[/tex]
Working for savings plan:
[tex]A=p(1+\frac{r}{n})^{nt}[/tex]
Here, p = 3400 ; n = 1 , t = 2 , r = 0.042
Putting values in formula:
[tex]A=3400(1+\frac{0.042}{1})^{2}[/tex]
[tex]A=3400(1+0.042)^{2}[/tex]
A = $3691.60
We get a gain of [tex]3691.60-3400=291.60[/tex] dollars
Working for stock plan: Â
The stock plan decreases 3% in the first year and increases 7.5% in the second year.
[tex]5100\times 0.97=4947[/tex]
When increases;
[tex]4947\times1.075=5318.03[/tex] Â dollars
So, we get a gain of [tex]5318.03-5100=218.03[/tex] dollars Â
Therefore, we have a total gain of [tex]291.06+218.03=509.09[/tex] dollars.
Answer:
$509.63
Step-by-step explanation:
This is the correct answer for connexus
