Question

Aubrey invested $5,400 in an account paying an interest rate of 1 1/2​​% compounded monthly. William invested $5,400 in an account paying an interest rate of 7/8​​ % compounded daily. After 17 years, how much more money would Aubrey have in her account than William, to the nearest dollar?

Answer 1

Hi there
The formula is
A=p (1+r/k)^(kt)
A future value
P present value
R interest rate
K compounding period
T time

Aubrey investment
P 5400
r 1+1/2=1.5%
K compounded monthly 12
T time 17 years
A=5,400×(1+0.015÷12)^(12×17)
A=6,967.38

William investment
P 5400
R 7/8=0.875÷100=0.00875
K compounded daily 360
T time 17 years
A=5,400×(1+0.00875÷360)^(360×17)
A=6,266.06

So how much more money would Aubrey have in her account than William
6,967.38−6,266.06
=701.32

Hope it helps

Answer 2

5481 X 12=65772
5447.25 X 12=65367
65367-65772=405