Question

savings strategies comparison
which saving strategy has a higher balance (total amount saved) after one year?
(5 points)
savings account
piggy bank
which saving strategy has a higher balance (total amount saved) after two years? (5 points)
savings account
piggy bank
which saving strategy has a higher balance (total amount saved) after three years? (5 points)
savings account
piggy bank
approximately what is the difference in the total amount saved after three years? explain in 1 to 2 sentences. (30 points)

Explanation:

1. For 1 year (12 months): Check the graph at x=12; the Piggy Bank line is higher than the Savings Account line.
2. For 2 years (24 months): Check the graph at x=24; the lines cross around 20 months, so at 24 months, Savings Account is higher.
3. For 3 years (36 months): Check the graph at x=36; the Savings Account line is far higher than the Piggy Bank line.
4. For the difference at 3 years: At 36 months, Savings Account is ~$2000, Piggy Bank is ~$800; subtract to find the difference.

Answer:

1. After one year: Piggy Bank
2. After two years: Savings Account
3. After three years: Savings Account
4. After three years, the approximate difference is $1200; the Savings Account holds ~$2000 while the Piggy Bank holds ~$800, so $2000 - $800 = $1200.