SATMathematics Practice Test 1

Jessica made an initial deposit of 100 into her account.
The interest on her account is 2 percent compounded annually, so after 10 years, the value of her initial deposit has been multiplied 10 times by the factor 1+0.02=1.02.
Hence, after 10 years, Jessica’s deposit is worth 100(1.02)10=121.899 to the nearest tenth of a cent.
Tyshaun made an initial deposit of 100 into his account.
The interest on his account is 2.5 percent compounded annually, so after 10 years, the value of his initial deposit has been multiplied 10 times by the factor 1+0.025=1.025.
Hence, after 10 years, Tyshaun’s deposit is worth 100(1.025)10=128.008 to the nearest tenth of a cent.
Hence, Jessica’s initial deposit earned 21.899 and Tyshaun’s initial deposit earned 28.008.
Therefore, to the nearest cent, Tyshaun’s initial deposit earned 6.11 more than Jessica’s initial deposit.