Question

2. Your grandparents give you two options to invest money for your future. The first option is to

put $10,000 into an account and add $2000 each year for 25 years (the initial $10,000 doesn’t
count as a year). The second option is to put $3 into an account and double the amount in the
account each year for 14 years (the initial $3 doesn’t count as a year). Which option would
result in a greater sum of money and by how much?


3. The population of a certain species of bacteria doubles every hour. Use the following
exponential population equation to determine the amount of time it would take a population of
1 bacteria to grow to 1024. = 0(2)^t

Answer 1

Option 1 by $10,851.

Explanation:

The second option is a geometric series with first term 3 and common ratio.

2.

Amount in the account after 14 years = 3 * (2^14) - 1) / (2 - 1)

= $49.149

The second option: the amount after 25 years will be 10,000 + 25(2000)

= 60,000.

So the first option results in more money .

It is 60,000 - 49,149 - $10851.