The question is incomplete:
Argyle has $1000 in his savings account.
He wants to save more money. He’s looking to investment plans. Under plan a, he will increase his account balance by $300 a year. Under Plan B, he will increase his account balance by 15% each year. How much more will he save with Plan B after 10 years?
Answer:
$45
Explanation:
First, let's determine the amount he will have after 10 years with plan A:
$1,000+($300*10)= $1,000+$3,000= $4,000
Then, to determine the amount Argyle will have after ten years under plan B you can use the following formula:
FV= PV(1+i)^n
FV= future value
PV= present value= 1,000
i= interest rate= 15%
n= number of periods= 10
FV= 1,000*(1+0.15)^10
FV= 1,000*4.045
FV= 4,045
Now, you have to find the difference between the amounts you will get with each plan:
4,045-4,000= $45
Argyle will save $45 more with Plan B after 10 years.