elisa puts $1,000 into each of 2 bank accounts. account a: 3% interest rate, compounded annually, which is…

elisa puts $1,000 into each of 2 bank accounts. account a: 3% interest rate, compounded annually, which is exponential growth account b: $40 bonus added to the account each year, which is linear growth complete how much money will be in account a at the end of 3 years? $ how much money will be in account b at the end of 3 years? $ done

elisa puts $1,000 into each of 2 bank accounts. account a: 3% interest rate, compounded annually, which is exponential growth account b: $40 bonus added to the account each year, which is linear growth complete how much money will be in account a at the end of 3 years? $ how much money will be in account b at the end of 3 years? $ done

Answer

Explanation:

Step1: Recall compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (as a decimal), and $t$ is the number of years. For Account A, $P=$1000$, $r = 0.03$, and $t = 3$.

Step2: Calculate the amount in Account A

Substitute the values into the formula: $A=1000\times(1 + 0.03)^3=1000\times(1.03)^3=1000\times1.092727=$1092.73$.

Step3: Analyze the growth of Account B

Account B has a linear growth. The initial amount $P = 1000$, and a fixed amount of $40$ is added each year. The formula for the amount $A$ in Account B after $t$ years is $A=P + 40t$.

Step4: Calculate the amount in Account B

Substitute $P = 1000$, $t = 3$ into the formula: $A=1000+40\times3=1000 + 120=$1120$.

Answer:

Account A: $1092.73$ Account B: $1120$