Question

Sally is given $850. Every year, she decides to donate 9% of this money to charity until she has none left.

After 34 years, approximately how much money will Sally have left?

Answer 1

Explanation:

Year 1: $850 * 0.91 = $773.50

Year 2: $773.50 * 0.91 = $704.69

Year 3: $704.69 * 0.91 = $641.95

...

Year 34: (continue the pattern)

We can continue this calculation for each year, but to save time, we can use an exponential decay formula:

Remaining Amount = Initial Amount * (1 - rate)^years

Substituting the values:

Remaining Amount = $850 * (1 - 0.09)^34

Calculating this expression:

Remaining Amount ≈ $850 * (0.91)^34 ≈ $255.88

After 34 years, approximately $255.88 will be left with Sally.