Question

Cheyanne plans to put $150 into a savings account. She can place her money into an account represented by f(x) = 5x+150, or into another account represented by g(x) = 150(1.03)^x. Which of thses accounts has the highest value in 3 years and the highest value in 10 years?

Answer 1

In order to calculate the amount, we simply substitute the number of years into x in both equations.
After 3 years:
f(3) = 5(3) + 150
= $165
g(3) = 150 * 1.03⁽³⁾
= $163.90
After 10 years:
f(10) = 5(10) + 150
= $200
g(10) = 150 * 1.03⁽¹⁰⁾
= $201.59
After three years, the first account has more money but after ten years, the second account has more money.