Your parents invested money in college savings accounts when you and your sister
ID: 3036872 • Letter: Y
Question
Your parents invested money in college savings accounts when you and your sister were born. The balance A (in dollars) of your account after t years can be modeled by A = 3800e0.07t. The graph shows the balance of your sister's account over time. Which account has a greater principal? Which has a greater balance after 10 years?
A.) Your account has a greater principal. Your account has a greater balance after 10 years.
B.) You account has a greater principal. Your sister's account has a greater balance after 10 years.
C.) Your sister's account has a greater principal. Your sister's account has a greater balance after 10 years.
D.) Your sister's account has a greater principal. You account has a greater balance after 10 years.
Your Sister's Account 9000 AA 8000 7000 6000 5000 4000 (0, 4300) 3000 2000 1000 2 4 6 8 10 12 14 16 YearExplanation / Answer
Principal in sister's account = $ 4300 >$ 3800
After 10 years , balance in my account = 3800 e0.07x10
= 3800 e0.7
= $7652 (to the nearest integer)
After 10 years , balance in sister's account < $ 7000 (reading from the graph, corresponding to t =10)
< $7652
So the correct choice is
D.) Your sister's account has a greater principal. You account has a greater balance after 10 years.
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