AnswersAZ-College Prep Math BUnit Test — Unit testQuestion 6
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Unit Test — Unit test

Question 6 • AZ-College Prep Math B

Rick put his $200 into a simple interest account at 3.25% interest. Julian put his $200 into a compound interest account that gives 3% interest compounded annually. The table below shows their yearly balance after interest has been applied. BalanceRickJuliandeposit200200Year 1206.50206.00Year 2213.00212.18Year 3219.50218.55Year 4226.00225.11Year 5232.50231.85Year 6239.00238.81Year 7245.50245.97Year 8252.00253.35Year 9258.50260.95Year 10265.00268.78Which statements are true about their balances? Select four options.

Answer
A
After 10 years, Rick has a larger balance than Julian.
B
Julian accumulated $3.78 more in interest after 10 years.
C
Julian’s bank pays greater interest if he keeps his money in the bank for more than seven years.
D
Julian’s balance increases by the same amount each year.
E
Julian’s bank pays greater interest if he keeps his money in the bank for less than seven years.
F
Rick’s balance increases by the same amount each year.
G
After five years, Rick has a larger balance than Julian.
H
Julian accumulated $0.65 more interest after five years.

Explanation

After 10 years, Julian has $268.78 and Rick has $265.00, so Julian has $3.78 more (B). Julian’s balance is higher from year 7 onward, including after more than seven years (C). Rick’s simple-interest balance rises by $6.50 each year, so it increases by the same amount each year (F). After five years, Rick has $232.50 compared with Julian’s $231.85, so Rick has the larger balance (G).

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