## Avery invested $2,100 in an account paying an interest rate of 7 7/8% compounded continuously. Morgan invested$2,100 in an account paying a

Question

Avery invested $2,100 in an account paying an interest rate of 7 7/8% compounded continuously. Morgan invested$2,100 in an account paying an interest rate of 8 1/4 % compounded annually. After 12 years, how much more money would Morgan have in her account than Avery, to the nearest dollar?

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1 week 2021-11-26T04:03:19+00:00 1 Answer 0

Step-by-step explanation:

step 1

Avery

we know that

The formula to calculate continuously compounded interest is equal to

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

e is the mathematical constant number

we have

substitute in the formula above

step 2

Morgan

we know that

The compound interest formula is equal to

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest  in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

substitute in the formula above

step 3

Find the difference

To the nearest dollar