Question

. Louisa has $4,500 in her savings
account. She has to choose between two
savings plans. Under plan A, she will
increase her account balance by 10% per
year. Under plan B, her account balance
will increase by $525 per year.
If she plans to keep her money in savings
for 3 years, which plan should she
choose? How much more will she save
under that plan?

Answer 1

after n years, we have

A: 4500*1.10^n
B: 4500+525n

so, plug in n=3 and see which is greater, and by how much.

Answer 2

6500