Question

12. Ben and Jerry invest $50 000 and $75 000 respectively in the same bank.

If the rate is 8%, how many whole years will it take for Ben to cross the amount of money that Jerry would have in 2 years?

Answer 1

Jerry: $75000 x 1.08 = $81000 x 1.08 = $87480 after 2 years

Ben: $50000 x 1.08 = $54000 x 1.08 = $58320 x 1.08 = $62.985.6 x 1.08 = $68024.45 x 1.08 = $73466.40 x 1.08 = $79343.72 x 1.08 = $85691.21 x 1.08 = $92546.51 after 8 years.

It would take 7 whole years to cross the amount that Jerry would have in 2 years.