3) the image below shows the same functions as above, with the function for y = 20000×1.03^x included. if a…

3) the image below shows the same functions as above, with the function for y = 20000×1.03^x included. if a person is going to have money in a savings account for more than 10 years, is an initial deposit of $20000 at 3% compound interest or an initial deposit of $10000 at 10% compound interest a better choice? o 5% o 10% o $10000 at 10% compound interest o $20000 at 3% compound interest

3) the image below shows the same functions as above, with the function for y = 20000×1.03^x included. if a person is going to have money in a savings account for more than 10 years, is an initial deposit of $20000 at 3% compound interest or an initial deposit of $10000 at 10% compound interest a better choice? o 5% o 10% o $10000 at 10% compound interest o $20000 at 3% compound interest

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, and $t$ is the number of years.

Step2: Calculate the amount for the first case

For $P_1=20000$, $r_1 = 0.03$, and $t>10$ (let's assume $t = 10$ for a simple comparison), $A_1=20000\times(1 + 0.03)^{10}=20000\times1.03^{10}\approx20000\times1.343916379\approx26878.33$.

Step3: Calculate the amount for the second case

For $P_2 = 10000$, $r_2=0.1$, and $t = 10$, $A_2=10000\times(1 + 0.1)^{10}=10000\times1.1^{10}\approx10000\times2.59374246\approx25937.42$.

Answer:

$20000$ at $3%$ compound interest