Nolan began a savings account three years ago. He invested $100 at a 2% interest rate according to the equation Vn = 100(1.02)x, where Vn is the value of his account after x years. Anias started an account today. She invested $100 at a 2% interest rate according to the equation Va = 100(1.02)x–3, where Va is the value of her account. Let’s say Anias started saving at the same time Nolan did, three years ago. Approximately how much money would she have had to invest to have the same amount of money she has now?
Anias has $100 today, and her account earns 2% per year. If she had invested an amount three years ago, that amount would have grown by a factor of 1.02³. So the starting amount is $100 ÷ 1.02³ ≈ $94.23, which is choice C.
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