Sydney invests $100 every month into an account that pays 0.8% annual interest, compounded monthly. Benny invests $80 every month into an account that pays 2.2% annual interest rate, compounded monthly.
a. Determine the amount in Sydney’s account after 10 years.
b. Determine the amount in Benny’s account after 10 years.
c. Who had more money in the account after 10 years?
d. Determine the amount in Sydney’s account after 30 years.
e. Determine the amount in Benny’s account after 30 years.
f. Who had more money in the account after 30 years?
g. Write the future value function for Sydney’s account where x represents the number of months.
h. Write the future value function for Benny’s account where x represents the number of months.
i. Graph Benny and Sydney’s future value function on the same axes.
j. Explain what the graph indicates.