Answer:
B is correct
Explanation:
What is need to be done here is to set up an exponential equation for both scenario.
The exponential equation to set up is as follows;
V = P(1 + r)^t
It looks exactly like an equation used to get the amount on a compound interest after a stipulated number of years.
We have the following definitions;
V is the future value.
P is the present value
r is the rate in percentage
t is the time in years
So, for A, we have;
Kindly note that 4% = 4/100 = 0.04
110,000(1+0.04)^t = 110,000(1.04)^t
For B, we have;
6/100 = 0.06
100,000(1+0.06)^t = 100,000(1.06)^t
Now expected value of B is twice that of A.
The equation that defines this would look like;
100,000(1.06)^t = 2(110,000(1.04)^t)