Save up to buy a computer; which costs $1,100. She received $500 for tuition and decides to invest the money in a fund where she can earn interest on her money. Use the simple interest formula and the compound interest formula. I = P(1 for plan A and plan B. Plan A earns 6.50% interest on the original balance each month. The account matures monthly.
She has previously determined that she should use Plan A because she will have $890.00 after 6 months. Using math, she still does not have enough money to buy the computer. Plan A will give her $1,064.55 after 12 months. How many more months will it take for her to reach $1,100.00 using Plan B?
Using Plan B, it will take more months. (Round up to the nearest month as needed).