# How do I solve the following word problem? How much money will she have altogether from the two accounts after 5 years? Judy has \$8,000 to invest.  She invests \$6,000  in an account that pays an...

How do I solve the following word problem?

How much money will she have altogether from the two accounts after 5 years?

Judy has \$8,000 to invest.  She invests \$6,000  in an account that pays an annual percentage rate of 5% compounded quarterly.  Then she decides to invest the remaining money in a speculative account that is advertised at 8% compounded monthly.

Assume she gets lucky and the speculative account pays at 8% the entire time.  Round your answer to the nearest dollar.

lfryerda | Certified Educator

calendarEducator since 2012

starTop subjects are Math and Science

To find the amounts in each investment account, use the formula for compound interest:

`A=P(1+i)^n`  where A is the amount in the account after the investment period is complete, P is the amount invested initially, i is the interest rate per period...

(The entire section contains 110 words.)