Question

Anita had $400 in her savings account when she went to college. Her parents will add $200 to her account each month.

Miguel had $25 in his savings account. His parents will double the amount in his account each month.

If Anita and Miguel do not take any money from their accounts, whose account will grow faster? Explain why.

Answer 1

Miguel's account

Explanation:

Even though Anita had more money at first compared to Miguel, Miguel savings will double each month while Anita will get only $200 each month. As a result, Miguel's account will grow faster compared to Anita's.

Answer 2

Miguel's account

Explanation:

Miguel's account savings are doubled every month. Hence, they will eventually surpass the savings of Anita, even though Anita's account has more money atm.