Question

3. The parents of a newborn girl want to invest $1000 in some kind of saving plan that their child could

use after her 21st birthday. Savings Plan A will increase the amount in the account by $75 per year for
as long as the account is active. Savings Plan B will increase the amount in the account by 5% per year
as long as the account is open


Write an equation for plan A


Write an equation for plan B

Answer 1

A. 1000x75t=i

B. 1000(1+5%/n)^t

Explanation:

i=prt interest principle rate time

a=p(1+r/n)^t amount principle rate number of times interest is compound time

Hope this helps.