Suppose Emily Yu deposited $1,400 in an account that earned simple interest at an annual rate of 10% and left it there for 3 years. At the end of the 3 years, Emily deposited the entire amount from that account into a new account that earned 10% compounded quarterly. She left the money in this account for 8 years. How much did she have after the 11 years? Round your answer to the nearest cent.
A)$4,010.84
B)$5,197.15
C)$3,429.86
D)$3,088.77
E)$8,672.19

Question

Suppose Emily Yu deposited $1,400 in an account that earned simple interest at an annual rate of 10% and left it there for 3 years. At the end of the 3 years, Emily deposited the entire amount from that account into a new account that earned 10% compounded quarterly. She left the money in this account for 8 years. How much did she have after the 11 years? Round your answer to the nearest cent. ​
A)$4,010.84
B)$5,197.15
C)$3,429.86
D)$3,088.77
E)$8,672.19

Quizplus · Accepted Answer

The correct answer is A because the total amount after 11 years is $4,010.84. The amount after 3 years in the first account is $1,400 + (1,400 * 0.10 * 3) = $1,820. The amount after 8 years in the second account is $1,820 * (1 + 0.10/4)^(4*8) = $4,010.84.

Suppose Emily Yu Deposited $1,400 in an Account That Earned