Question

Account a and b each start with $400. If account a earn $45 each year and account b earns 5% of its value each year when will account b have more money than account a

Answer 1

Answer:  $T>2.185$ year

Step-by-step explanation:

$A=P\left ( 1+R/100\right )^{T}$

$A=Amount ,P=Principle , R=Rate , T=Time$

CI=compound interest

$CI=A-P$

$P=400$  for each a and b

account earn each year by a=$45$

account b earns  $5%$%

find the time the value of b is more

$45$

$445$

$445/400$

$\ln \left ( 445/400 \right )$

$.106609735$

$=2.1850$

$T>2.185$ year