Oliver, Lily, and Ella are hoping to save money. Oliver thinks saving money in a shoe box in his closet every month is a good idea. He decides to start with $150, and then save $75 each month. Lily was given $4000 from her Great Uncle Merv, and decides to put the money into an account that has a 7% interest rate that is compounded annually. Ella has earned $4500 working at the gas station and decides to put her money in the bank in an account that has a 7.5% interest rate that is compounded continuously.
The question is describe the type of equation that models Oliver’s situation. Create that equation of Oliver’s situation. Using the equation you created, how much money will be in Oliver’s account after 2 years? 10 years?