Question

$100(1+0.105)^{18}$
part b. write an expression to represent option 2.
$100 + 20 \times 18$
part c. use the expressions you wrote to determine which option will result in a better 18th birthday gift. use words and mathematics to show your reasoning.

Explanation:

Answer:

$100 + 20 \times 18$
$100(1+0.105)^{18} \approx 538.5$, $100 + 20 \times 18 = 460$. The first option (the compound interest one) is a better 18th birthday gift as its value is higher.