Question

Rachel and Jeffry decided to start saving for college. Rachel has $1,500 to start her savings account, and Jeffery has $1,200. Rachel’s bank offered her an interest rate of 7.5% compounded annually. Jeffery decided to keep his money in a safe in his bedroom, and he adds $200 to his safe each year. Suppose that A represents the accumulated money in each one’s savings fund and t represents the number of years. Choose the equations that form the system that best models this situation.

A) A = 200t + 1,200
B) A = 1,200(1.2)^t
C) A = 7.5t + 1,500
D) A = 1,500(1.075)^t
E) A = 1,200(1.075)^t

Answer 1

A = 200t + 1,200

A = 1,500 (1.075)^t

Explanation:

Answer 2

A and D. Jeffery adds $200 every year (t) to a constant of $1,200. Meanwhile you use the simple interest formula to find the correct expression for Rachel.