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