Question

Braxton has money in a savings account. The equation B = 800(1+0.03)'.

Answer 1

Answer:

a) Braxton's initial investment is equals to (=) Pam's initial investment.

b)The interest on Braxton's account is less than (< ) the interest on Pam's

   account.  

Step-by-step explanation:

Given - Braxton has money in a savings account. The equation

            B = $800(1 + 0.03)^{t}$ can be used to calculate the amount of money    

            in dollars, B, Braxton has in his account after t years since opening

             the account.  Pam also has money in a savings account. The  

            equation, P= $800(1 + 0.04)^{t}$  can be used to calculate the  amount of  

             money in dollars, P, Pam has in her account after t years since  

              opening the account.      

To find - a) Braxton's initial investment ..........Pam's initial investment.

                b) The interest on Braxton's account .....the interest on Pam's

                    account.

Proof -

As given, Broxton equation is -  

                 Pam equation is -    

Now,

a.)

For initial investment , Put t = 0

⇒B = $800(1 + 0.03)^{0} = 800(1) = 800$  

   P =  $800(1 + 0.04)^{0} = 800(1) = 800$  

We can see that for  t = 0

Initial investment of Braxton = Initial investment of Pam

⇒Braxton's Initial investment = Pam's initial investment.

b.)

For the interest,

As we have not given any time period for which the interest has to be find.  

So , let the time period , t = 5 years

Therefore,

B = $800(1 + 0.03)^{5} = 800(1.03)^{5} = 800(1.159) = 927.42$  

P = $800(1 + 0.04)^{5} = 800(1.04)^{5} = 800(1.217) = 973.32$

Now,

Interest on Braxton's account = 927.42 - 800 = 127.42 ≈ 127

Interest on Pam's account = 973.32 - 800 = 173.32 ≈ 173

∴ we get

The interest on Braxton's account is less than the interest on Pam's account.