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  • Winston Ong Math 346 Problem #1

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    Winston Ong
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    This document discusses how long it will take for an account balance to reach 2x under different interest rate conditions. It states that with an interest rate of 0%, it will take 100 years to double, while with a 5% rate it will take 40 years. It concludes that the solution with a 5% rate is superior because the account will accumulate interest at a faster pace, leading to the balance doubling sooner.

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    This document discusses how long it will take for an account balance to reach 2x under different interest rate conditions. It states that with an interest rate of 0%, it will take 100 years to double, while with a 5% rate it will take 40 years. It concludes that the solution with a 5% rate is superior because the account will accumulate interest at a faster pace, leading to the balance doubling sooner.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    9 views1 page

    Winston Ong Math 346 Problem #1

    Uploaded by

    Winston Ong
    This document discusses how long it will take for an account balance to reach 2x under different interest rate conditions. It states that with an interest rate of 0%, it will take 100 years to double, while with a 5% rate it will take 40 years. It concludes that the solution with a 5% rate is superior because the account will accumulate interest at a faster pace, leading to the balance doubling sooner.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Winston Ong

    Math 346
    Problem #1

    (a) If s is equal to zero, the account will not reach 2x until after a period of one hundred years.

    (b) If s is equal to five, it will take forty years for the account balance to double to 2x

    (c). Because the balance in the account will increase at a faster rate when s=5, rather than when
    s=0, the solution given in part (a) is superior than the answer given in part (b). This is due to the
    fact that the account will accumulate interest at a rate that is greater when s=5 as opposed to
    when s=0.

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