Question

Bella plans to put $300 into a savings account. She can place her money into an account represented by p(x) = 3x+300, or into another account represented by

n(x) =300(1.04)^x. Which account has the highest value in 5 years? Which account has the highest in 12 years? Show your work!​

Answer 1

3(5) + 300 = 15 + 300 = 315

300(1.04)^5 = 300 * 1.21665 = 365

In 5 years, the second account is higher.

3(12) + 300 = 336

300(1.04)^12 = 300 * 1.601 = 480

In 12 years, the second account is higher