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## ian invested $100 in an account paying an interest rate of 9 1/4% compound daily. Addison invested $100 in an account paying an interest rat

Question

ian invested $100 in an account paying an interest rate of 9 1/4% compound daily. Addison invested $100 in an account paying an interest rate of 9 3/8% compounded monthly. After 13 years, how much money would addison have in her account than Ian, to the nearest dollar?

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Mathematics
3 years
2021-08-24T14:08:57+00:00
2021-08-24T14:08:57+00:00 1 Answers
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## Answers ( )

Answer:$5.67, or $6 rounded to the nearest dollar.

Step-by-step explanation:To determine the amount that both Ian and Addison will have in their respective accounts after 13 years, knowing that they both invested $ 100 in accounts with daily compound interest, but Ian did it in one with an interest of 9.25% while Addison did it in one with a interest of 9.375%, the following calculations must be made:

Ian = 100 x (1 + 0.00925 / 365) ^ 13×365

Ian = 332.79

Addison = 100 x (1 + 0.009375 / 365) ^ 13×365

Addison = 338.46

338.46 – 332.79 = 5.67

Therefore, Addison will have $ 5.67 more than Ian after the investment term.