Question

Mav invested $42,000 in an account paying an interest rate of 8 1/2% compounded annually. Latanya invested $42,000 in an account paying an interest rate of 8 7/8% compounded daily. After 13 years, how much more money would Latanya have in her account than Mav, to the nearest dollar ?

Answer 1

Latanya would have $31280 more than Mav

Explanation:

If it was being compounded annually you would be using the equation Amount= Principal[1+(r/n)]^nt with r being the rate and n being amount of times compounded per year with t being time. If you plug in the values you would get Amount=42,000(1.04)^13 for Mav and Amount=42,000(1.07)^13 for Latanya. For Mav you would have $69933.09 being taken away by 101213.49(Latanya money). After subtracting you would have $31280.40 and since you are rounding to the nearest dollar you would have $31280

Answer 2

It’s $11831

Explanation:

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