Answer:
Jerry has a better saving plan for increasing his savings than Carlos
Step-by-step explanation:
Jerry's initial principal = $1000
Carlos initial principal = $1000
Jerry add $50 monthly this means that in 6 months he has
$50 x 6 = $300 as interest
This means that at the end of 6 months, Jerry would have $1,300 dollars at home
For Carlos the interest rate is 4% per year compounded monthly
If we calculate his interest per month we have:
Interest = 1000 x 4/(100 x 12) = $3.33
2nd month = 1003.33 x 4/(100 x 12) = $3.34
3rd month = 1006.68 x 4/(100 x 12) = $3.36
4th month = 1010.04 x 4/(100 x 12) = $3.37
5th month = 1013.41 x 4/(100 x 12) = $3.38
6th month = 1016.79 x 4/(100 x 12) = $3.40
At the end of 6 month, Carlos would have $1020.18 in the bank
Hence, Jerry has a better saving plan for increasing his savings than Carlos
