Julie put half of her savings in a savings account that pays an annual simple interest and half in a...

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Julie put half of her savings in a savings account that pays an annual simple interest and half in a savings account that pays an annual compound interest. After two years she earned $ and $ from the simple interest account and the compound interest account respectively. If the interest rates for both accounts were the same, what was the amount of julie's initial savings?

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Calculated Answer

1000

Step by Step Solution

In order to solve problem, you must evaluate n₀ / (((n₁ - n₀) * 2) / n₀).

• n₀ / (((n₁ - n₀) * 2) / n₀)

• Evaluate n₁ - n₀ = 5

  n₀ / ((5 * 2) / n₀)

• Evaluate 5 * 2 = 10

  n₀ / (10 / n₀)

• Evaluate 10 / n₀ = 0.1

  n₀ / 0.1

• Evaluate n₀ / 0.1 = 1000

  1000
• The answer to the problem and the result of n₀ / (((n₁ - n₀) * 2) / n₀) is 1000