Question

4. Ben has $100 in his savings account. He

is looking at two investment plans, Under
Plan A, he will increase his account
balance by $20 a year, Under Plan B, he
will increase his account balance by 15%
each year. Approximately how much will
Ben save after 3 years with each plan?
A Plan A: $160; Plan B: $145
B Plan A: $160; Plan B: $152
C Plan A: $173; Plan B: $152

Answer 1

Plan A: $160, Plan B: $152

Explanation:

PLAN A

add 20 dollars a year you would get

year one = $120

year two = $140

year three = $160

PLAN B

multiple your value by 1.15 (adding 15%) each year

year one = 100 x 1.15 = 115

year two = 115 x 1.15 = 132.25

year three = 115 x 1.15 = 152.08