Gretta, Trisha, and Steve are investing money in hopes of becoming millionaires. All accounts have annual compound interest. Gretta invests $2,000 in an account that promises 10% growth every year. Trisha invests $1,000 in an account that promises 15% growth every year. Steve invests $2,000 in an account that promises 5% growth every year. Gretta tells Steve he did not invest his money well. Steve says the percent growth is not a big deal. He says, "In ten years, we'll both have a lot more money. You will just have 5% more than I do." Explain why Steve's statement is incorrect.

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Gretta, Trisha, and Steve are investing money in hopes of becoming millionaires. All accounts have annual
compound interest.
Gretta invests $2,000 in an account that promises 10% growth every year. Trisha invests $1,000 in an account
that promises 15% growth every year. Steve invests $2,000 in an account that promises 5% growth every year.
Gretta tells Steve he did not invest his money well. Steve says the percent growth is not a big deal. He says, "In
ten years, we'll both have a lot more money. You will just have 5% more than I do." Explain why Steve's
statement is incorrect.
Transcribed Image Text:Gretta, Trisha, and Steve are investing money in hopes of becoming millionaires. All accounts have annual compound interest. Gretta invests $2,000 in an account that promises 10% growth every year. Trisha invests $1,000 in an account that promises 15% growth every year. Steve invests $2,000 in an account that promises 5% growth every year. Gretta tells Steve he did not invest his money well. Steve says the percent growth is not a big deal. He says, "In ten years, we'll both have a lot more money. You will just have 5% more than I do." Explain why Steve's statement is incorrect.
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