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?
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?
Answers
Steve
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.
A: 4500*1.10^n
B: 4500+525n
so, plug in n=3 and see which is greater, and by how much.
asmar
6500