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

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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) About Me  (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 > %28500%2B50y%29%2F500
1.05^y > 1 + .1y
1.05^y -.1y - 1 = 0 Graphically
+graph%28+300%2C+200%2C+-10%2C+50%2C+-2%2C+4%2C+1.05%5Ex-.1x-1%29+
"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