[Video] Q38: Jessica’s friend tyshaun found an account that earns 2.5 percent interest compounded annually. tyshaun made an initial deposit of $100 into this account at the same time jessica made a deposit of $100 into her account. after 10 years, how much more money will tyshaun’s initial deposit have earned than jessica’s initial deposit? (round your answer to the nearest cent and ignore the dollar sign when gridding your response.)

Explanation for Question 38 From the Math (Calc) Section on the Official Sat Practice Test 1

Now question number 38 says that Jessica's friend, 2 hi, Sean found an account that earns 2.5% interest compounded annually. 3 So this new account has 2.5% interest. 4 TaShawn made an initial deposit of a hundred dollars into the account. 5 And at the same time, Jessica made an initial deposit of a hundred dollars 6 into her account. And that equation is up here, 7 right? And it says after 10 years, 8 right? So now the time T is equal to 10 years, 9 how much more money will, um, 10 Ty Sean's initial deposit have earned than Jessica's deposit, 11 and we're going to round to the nearest cent, 12 right? To the nearest hundredth. So the best strategy here is first define the 13 amount and Jessica's account. Then find the amount in tide Shaw's account and compare 14 the two by subtracting. So let's start with Jessica, 15 right? She had 100 and then question number 37. 16 We decided that we would multiply that by 1.02, 17 because we're increasing by 2% each year. 18 So that T now has become a 10, 19 right? Because in question 38, they told us this what happened for 10 years. 20 So now we just have to plug that into our calculator. 21 We can do 100 times 1.0, 22 two rates to the 10th, and you'll get 121.8 9, 9, 4. 23 And so it's always a good idea to go out a few more decimal 24 points here than what they want, even though they want this decimal, 25 just to make sure that rounding doesn't make your answer any less accurate. 26 So this is, um, Jessica, and now we can solve for how mu...