Question

You set a goal to save at least 1,100 over a six week period. You are trying to decide between two plans. You are trying to decide between two plans

Plan A: Deposit $100 the first week and deposit 25% more each successive week for the next 5 weeks

Plan B: Deposit $125 the first week and deposit 15% more each successive week for the next 5 weeks

which plan will result in total savings of at least $1,100? I would appreciate an explanation and showing your work.

Answer 1

Plan A

Explanation:

Plan A: 1st week : $100 saved

2nd week : $100 x 1.25 = $125 saved

3rd week : $125 x 1.25 = $156.25 saved

4th week : $156.25 x 1.25 = $195.31 saved

5th week : $195.31 x 1.25 = $244.14 saved

6th week : $244.14 x 1.25 = $305.17 saved

Total saved = $1125.87

Plane B: 1st week : $125 saved

2nd week : $125 x 1.15 = $143.75 saved

3rd week : $143.75 x 1.15 = $165.31 saved

4th week : $165.31 x 1.15 = $190.10 saved

5th week : $190.10 x 1.15 = $218.62 saved

6th week : $218.62 x 1.15 = $251.41 saved

Total saved = $1094.19

Plan A results in a total of over $1100 of savings.