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Jessica's friend Tyshaun found an account that earns 2.5 percent interest compounded annually. Tyshaun made an initial deposit of $100 into this account at the same time Jessica made a deposit of $100 into her account. After 10 years, how much more money will Tyshaun's initial deposit have earned than Jessica's initial deposit?

Sagot :

Answer:

Tyshaun's initial deposit have earned $28.01 more money than Jessica's initial deposit

Step-by-step explanation:

As given, Jessica's initial deposit = $100

                Tyshaun initial deposit = $ 100

As given, Tyshaun account earns 2.5 percent interest compounded annually.

rate = 2.5% = 0.025

so, after t= 10 years

Payment = P[tex](1+r)^{t}[/tex] = 100[tex](1+0.025)^{10}[/tex] = 100[tex](1.025)^{10}[/tex] = 128.01

So ,

Interest = Money earned by Tayshaun - Jessica's initial deposit

            = 128.01 - 100

            = 28.01

∴ we get

Tyshaun's initial deposit have earned $28.01 more money than Jessica's initial deposit

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