Erica and Jason deposit money into their savings accounts at the end of each month. The table shows the account balances.If their patterns of saving continue, and neither earns interest nor withdraws any of the money, how will the balances compare after a long time?Month Erica Jason1 $40 $0.012 $80 $0.023 $120 $0.044 $160 $0.085 $200 $0.16A.Erica’s balance will be greater.B.Jason’s balance will be greater.C.The balances will be the same.SUBMITarrow_backPREVIOUS
Question
Erica and Jason deposit money into their savings accounts at the end of each month. The table shows the account balances.If their patterns of saving continue, and neither earns interest nor withdraws any of the money, how will the balances compare after a long time?Month Erica Jason1 0.012 0.023 0.044 0.085 0.16A.Erica’s balance will be greater.B.Jason’s balance will be greater.C.The balances will be the same.SUBMITarrow_backPREVIOUS
Solution
A. Erica’s balance will be greater.
Here's why:
Erica is depositing $40 into her account each month. Jason, on the other hand, is depositing an amount that is increasing each month, but it's increasing by a very small amount.
After the first month, Erica has 0.01. After the second month, Erica has 0.02. This pattern continues with Erica's balance increasing by 0.01 each month.
Even though Jason's deposits are increasing, they are not increasing by enough to ever catch up to or surpass Erica's balance. Therefore, after a long time, Erica's balance will be greater.
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