Engage with knowledgeable experts and get accurate answers on IDNLearn.com. Our platform is designed to provide reliable and thorough answers to all your questions, no matter the topic.

In how many years will account b have more money than account a? How do you set up the equation?

In How Many Years Will Account B Have More Money Than Account A How Do You Set Up The Equation class=

Sagot :

Take into account that earnings for accounts A and B can be written as follow:

account A:

500 + 60t

account B:

500(1 + 0.06)^t = 500(1.06)^t

Now, if you replace for different values of t, in order to compare the earnings for each account, you can determine what is the value of t which makes earnings from account A greater than earnings from account B.

For instance, if you use t=22 and t=23

500 + 60(22) = 1820

500(1.06)^22 = 1801.76

500 + 60(23) = 1880

500(1.06)^23 = 1909.87

As you can notice, after t = 23 years the earnings from account B are greater than earnings from account B.