Question

Braxton has money in a savings account. The equation B = 800(1 + 0.03) can be used to calculate the amount

Answer 1

Answer:

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

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 - Braxton's initial investment ..........Pam's initial investment.

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

Proof -

As given, Broxton equation is - $800(1 + 0.03)^{t}$

               Pam equation is - $800(1 + 0.04)^{t}$  

Now,

1.)

For initial investment , Put t = 0

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

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

As for t = 0

Braxton's equation , B = Pam's equation,P

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

2.)

For the interest,

As we don not have time for which the interest has to be check.

So , let the time period = 5 years

Therefore,

B = $800(1 + 0.03)^{5} = 800(1.03)^{5} = 800(1.1593) = 927.42$

P =  $800(1 + 0.04)^{5} = 800(1.04)^{5} = 800(1.2166) = 973.32$

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.