Assuming no interest rates are involved,
PLanA : 100 + 100(1.25) + 100(1.25)^2 + ...
Plan B: 125 + 125(1.15) + 125(1.25)^2 + ..
each one is a GS,
first one: a = 100, r = 1.25, n = 6
2nd one: a = 125, r = 1.15, n = 6
I will find the sum of the 2nd plan, you find the sum of the first
sum(n) = a(r^n - 1)/(r-1)
= 125(1.15^6 - 1)/(1.15-1)
= 125(1.011357)/.15 = 1094.21
You set a goal to save at least 1,100 over a six week period. You are trying to decide between two plans. You are trying to decide between two plans
Plan A: Deposit $100 the first week and deposit 25% more each successive week for the next 5 weeks
Plan B: Deposit $125 the first week and deposit 15% more each successive week for the next 5 weeks
which plan will result in total savings of at least $1,100? I would appreciate an explanation and showing your work.
3 answers
I have found the answer to be plan A? is this correct
yes
1 answer