Suppose you have $28.00 in your bank account and you start saving $18.25 every week. Your friend has $161.00 in his bank account and is widthdrawing $15 every week. When will your account balances be the same ?
4 week
To find out when your account balances will be the same, we need to compare the amounts saved over time.
Let's start by figuring out how many weeks it will take for your friend's account balance to catch up to yours.
Your friend saves $15 every week, so we can calculate the number of weeks it will take for your friend's account balance to reach or exceed yours by dividing the difference in your account balances by the weekly saving amount of your friend.
Difference in Account Balances = Your Account Balance - Friend's Account Balance
Difference in Account Balances = $28.00 - $161.00 = -$133.00
Number of weeks = Difference in Account Balances / Weekly Saving Amount of your Friend
Number of weeks = -$133.00 / $15.00 ≈ -8.87
Since we cannot have a negative number of weeks, we can conclude that your friend's account will never catch up to yours. Therefore, your account balances will never be the same.
In this scenario, your account balance will always remain $28.00 while your friend's account balance continues to decrease by $15.00 every week.