Will Mark Brainiest Sara deposits $10 in an account that earns an interest rate of 5% compounded annually. What is the balance in the account at the end of 50 years? A) $114.67 B) $234.57 C) $635.21 D) $75.26 8) Davis puts $5,000 each year in an account that earns 5% annual interest, compounded annually. His brother Mike puts $5,000 each year in a safe in his bedroom. After the first 10 years of doing this, how much more money does Davis have than Mike? Round your answer to the nearest dollar. A) $20,524 B) $2,500 C) $31,445 D) $8,144
Accepted Solution
A:
Answer: 1) Option A is the correct answer 2) No options are correct.Explanation: The balance after n years is given by, B = P (1+r)ⁿ, where P is the principal, r is the rate of interest and n is the number of years. 1) B = 10 (1+0.05)⁵⁰= 114.67$ Option A is the correct answer. 2) Balance of Davis after 10 years, B = 5000 (1+0.05)¹⁰=8144.47 $ How much more money does Davis have than Mike = 8144.47-5000= 3144.47$ = 3144$ No options are correct.