Question

Anita had $400 in her savings account when she went to college. Her parents will add $200 to her account each month. Miguel had $25 in his savings account. His parents will double the amount in his account each month. If Anita and Miguel do not take any money from their accounts, whose account will grow faster? Explain why.

Answer 1

At first, Anita looks like her account would grow faster. By month 4, shes at $1,200 while Miguel is at $400. However, Anita is only getting $200 a month. While Miguel gets double of whatever amount he has in his bank account. By month 10, Anita is at $2,400 while Miguel has $25,600. That is a $23,200 difference. So Miguel's bank account will grow faster than Anita.