## Thinking Mathematically (6th Edition)

The amount of money that should be deposited in Account A is $\$51,409$The amount of money that should be deposited in Account B is$\$55,186$
This is the formula we use when we make calculations with compound interest. $A = P~(1+\frac{r}{n})^{nt}$ $A$ is the final amount in the account $P$ is the principal (the amount of money invested) $r$ is the interest rate $n$ is the number of times per year the interest is compounded $t$ is the number of years We can find the amount $P_A$ that should be deposited in Account A. $A = P_A~(1+\frac{r}{n})^{nt}$ $P_A = \frac{A}{(1+\frac{r}{n})^{nt}}$ $P_A = \frac{\$150,000}{(1+\frac{0.055}{1})^{(1)(20)}}P_A = \$51,409$ The amount of money that should be deposited in Account A is $\$51,409$We can find the amount$P_B$that should be deposited in Account B.$A = P_B~(1+\frac{r}{n})^{nt}P_B = \frac{A}{(1+\frac{r}{n})^{nt}}P_B = \frac{\$150,000}{(1+\frac{0.05}{360})^{(360)(20)}}$ $P_B = \$55,186$The amount of money that should be deposited in Account B is$\$55,186$