Answer:
1 A) $114.67
2 A) $20,524
Explanation: The balance after n years is given by, B = P (1+r)ⁿ, where P is the principal, r is the rate of interest and n is the number of years...
<em>1) </em><u><em> B = 10 (1+0.05)⁵⁰= 114.67$</em></u>
2)Step-by-step explanation:
Davis: each year he adds $5,000 and he earns 5%.
1: 5,000(1.05) = 8,144.47
2: 13,144.47(1.05) = 13,801.69
3: 18,801.69(1.05) = 19,741.78
4: 24,741.78(1.05) = 25,978.87
5: 30,978.87(1.05) = 32,527.81
6: 37,527.81(1.05) = 39,404.20
7: 44,404.20(1.05) = 46,624.41
8: 51,624.41(1.05) = 54,205.63
9: 59,205.63(1.05) = 62,165.91
10: 67,165.91(1.05) = 70,524.21
Mike: he saves $5,000 each year, no interest.
$5,000 · 10 = $50,000
$70,524.21 − $50,000 = $20,524