## 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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3 years 2021-08-24T14:08:57+00:00 1 Answers 28 views 0

## Answers ( )

1. 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.