Question

Autumn invested $69,000 in an account paying an interest rate of 6 3/8% compounded continuously. Jayden invested $69,000 in an account paying an interest rate of 6 1/4% compounded quarterly. After 14 years, how much more money would Autumn have in her account than Jayden, to the nearest dollar?

Answer 1

4,038.21

Explanation:

I'm going to assume that when you write 6 3/8% that equals 51/8%=6.375%

To find the value in the first equation we have

69000*e^(.06375*14)=168,444.5313

The second equation is as follows

69000(1+(.0625/4))^(14*4)=164,406.3243

Subtract the two and get 4,038.2071