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

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  1. Helga
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    2021-08-24T14:10:56+00:00
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    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.

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