SOLUTION: Account A and B each start out with $500. If Account A earns $50 each year and Account B earns 5% of its value each year, after how many years will Account B have more money than A

Question 1078264: Account A and B each start out with $500. If Account A earns $50 each year and Account B earns 5% of its value each year, after how many years will Account B have more money than Account A? If necessary, round your answer to the nearest year.

After about
(blank) years Account B will have more money than Account A.

Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
Account A and B each start out with $500.
If Account A earns $50 each year and Account B earns 5% of its value each year, after how many years will Account B have more money than Account A?
If necessary, round your answer to the nearest year.
:
Let y = no. years for this to be true
500*1.05^y > 500 + 50y
1.05^y >
1.05^y > 1 + .1y
1.05^y -.1y - 1 = 0 Graphically

"After about" 27 yrs "years Account B will have more money than Account A."
:
:
Check this on the your calc
Account A: 27(50) + 500 = $1850
Account B: 500(1.05^27) = $1866.73
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