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 $112 and $120 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? Choose the correct choice from the following options
A) 600
B) 784
C) 1080
D) 1200
E) 1440

Rationale: $ 112 for 2 years = $ 56 per year . extra $ 8 yearned with the compound interest is the percent yearned on percent . so , $ 8 is yearned on $ 56 , which means that the interest = 7 % . this on the other hand means that half of the savings = 56 * 7 = $ 392 . twice of that = $ 784 . answer : b .
Answer: B