Plan B: Put the $1,000 in an account that pays 5 percent interest per year.
Which statement is true?
Plan A will be worth more than plan B after two years.
Plan A will be worth the same amount as plan B after one year.
Plan B will be worth more than plan A after three years.
Plan B will be worth more than plan A after four years.
The true statement is Plan A will be worth more than plan B after two years.
The equation that can be used to represent the future value of plan A:
Total value = initial value x ($100 x number of years)
Value in 2 years: 1000 x (100 x 2) = $1200
Value in 3 years: 1000 x (100 x 3) = $1300
Value in 4 years: 1000 x (100 x 4) = $1400
The equation that can be used to represent the future value of plan B:
FV = P (1 + r)^n
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Make a guess for the value of the variables.
Write two equations using the assigned variables.
Make another guess, based on the results of the first guess. Solve the pair of equations.
Answer:
Options A, C and E are correct.
Step-by-step explanation:
a. Assign two variables for the unknowns.- Firstly we read the problem and then assign values like (x and y) to the unknown entities.
c. Write two equations using the assigned variables. - After the first step, we get few equations to be solved. These equations are based on the assigned values from step 1.
e. Solve the pair of equations. - Finally we solve these equations to get the variable values.
Answer:
Step-by-step explanation:
Assign two variables for the unknowns.
Write two equations using the assigned variables.
Solve the pair of equations.