Question

Savings Plan 1: You begin with a nickel in your piggy bank. You decide that every week, you will double the amount that is in your piggy bank.

Savings Plan 2: You begin with $25 in your piggy bank. You decide that each week, you will add 2 dollars regardless of how much is already in your piggy bank.
Which savings plan will result in more money in your piggy bank after 10 weeks?

a) Plan 1
b) Plan 2

Answer 1

After comparing the two plans over 10 weeks, Savings Plan 1, which involves doubling the amount every week, yields more money with a total of $51.20, in comparison to Savings Plan 2's $45.

Step-by-step explanation:

To determine which savings plan will result in more money in your piggy bank after 10 weeks, let's calculate the amount in each plan.

Savings Plan 1: You start with a nickel ($0.05) and double the amount every week.Let's compare the two savings plans over 10 weeks.

Savings Plan 1:

You start with a nickel ($0.05) and double it each week. So the total for 10 weeks is calculated as $0.05 × (2^10) = $0.05 × 1024 = $51.20.

Savings Plan 2:

You start with $25 and add $2 each week. The total after 10 weeks is calculated as $25 + ($2 × 10) = $25 + $20 = $45.

Plan 1 yields more money after 10 weeks.