Question

Two savings accounts earn simple interest. Account A has a beginning balance of $500 and grows by $25 per year. Account B has a beginning balance of $750 and grows by $15 per year.

Answer 1

After 25 years both the accounts will have the same balance.

Explanation:

Let t years, both the account will have the same balance.

As account A has a beginning balance of $500 and grows by $25 per year.

So, the total balance of account A after t years = 500+25t

Similarly, account B has a beginning balance of $750 and grows by $15 per year.

So, the total balance of account A after t years = 750+15t

As both the accounts has the same balance, so

500+25t= 750+15t

25t-15t=750-500

10t=250

t=250/10

t=25 years

Hence, after 25 years both the accounts will have the same balance.