Jessica spread Tyshaun found an account that earns two and a half percent interest compounded annually. Say Sean made an initial deposit of $100. into this account. At the same time, Jessica made a deposit of $100 into her account, after 10 whole years, how much more money will take Shawn's initial deposit have earned then Jessica's initial deposit Round your answer to the nearest cent. Ignore the dollar yada, yada, yada. Okay, so basically two people what Jessica put her money for 10 years at 2%.

Take Shawn put his money for $100 at 10 years, or 10 years $100, two and a half percent. And they want you to find out what difference they made in money. How much more did tayshaun make, given that he's making half a percent more a year. So let's go back to our handy dandy expressions they gave us which is 100 X to the T so let's write that down here to remind ourselves so 100 X to the T, right and again 100 just the ending initial deposit, which is going to be the same for both X is the percent, which is going to be different for both. And T is going to be the amount of yours which is going to be the same for both. So let's calculate Jessica's.

So Jessica is her expression is 100 times what is her expression? or What is her percentage that we're multiplying with? Well, she had 2%, or bank earnings or 2%. And remember, we said that to do 2%, you multiply by 1.02 to the 10 years to the 10th. Now, Ty, Shawn, he was a little smarter, and he actually went down the road to Bank of America where it gave him two and a half percent. So that was 100 times 1.025.

That's how we write two and a half percent as a decimal. Okay, to the 10. Now, what do we get? Well, 40 Shawn, if you plug that into your calculator, you will get 128.0 Eight and for Jessica, she has one 121.899 so that is how much they have in their account after 10 years. Okay? Doesn't seem like a whole lot of money and honestly seems like a waste of time and a waste of question.

But we have to do this because we need to do well on the LSAT. So now what you got to do is just take the difference. So, you take the difference that minus that so 120 8.08 minus 120 1.899 is equal to plug it into your calculator he was with the who wrote a book, what did you get? You will get 6.11 that is how much more tayshaun got from a point 5% increase in total interest. Good for him.