SOLUTION: Ben has $100 in his savings account. He wants to save more money. He is looking at two investment plans. Under plan A, he will increase his account balance by $20 a year. Under pla

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Ben has $100 in his savings account. He wants to save more money. He is looking at two investment plans. Under plan A, he will increase his account balance by $20 a year. Under pla      Log On

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Question 1179221: Ben has $100 in his savings account. He wants to save more money. He is looking at two investment plans. Under plan A, he will increase his account balance by $20 a year. Under plan B, he will increase his account balance by 15% each year. How much more will he save with Plan B after 10 years?

Answer by MathLover1(20849) About Me  (Show Source):
You can put this solution on YOUR website!

Under plan A, he will increase his account balance by $20 a year.
$100+%2B20%2At
after 10+years
$100+%2B20%2A10=300
Under plan B, he will increase his account balance by 15% each year.
account balance is 100% plus increase by 15%=115% or 1.15
100+%2A+%281.15%29%5E10=404.56
difference between plan A and B
404.56-300=104.56
he will save 104.56+more with Plan B after 10 years