Final answer:
After 10 years, Caroline would have approximately $13,822.72 more in her account than Qasim.
Step-by-step explanation:
To find out how much more money Caroline would have in her account than Qasim after 10 years, we need to calculate the final amounts in both accounts.
For Caroline's account:
Principal amount = $80,000
Interest rate = 8% compounded daily
Time = 10 years
The formula to calculate the future value of the investment is:
A = P(1 + r/n)nt
Where A is the future value, P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.
Using this formula, we can calculate the future value for Caroline's account:
A = 80000(1 + 0.08/365)365*10
A ≈ $202,695.77
For Qasim's account:
Principal amount = $80,000
Interest rate = 7¾% compounded quarterly
Time = 10 years
Using the same formula, we can calculate the future value for Qasim's account:
A = 80000(1 + 0.0775/4)4*10
A ≈ $188,873.05
To find out how much more money Caroline would have in her account than Qasim, we subtract the final amount in Qasim's account from the final amount in Caroline's account:
202,695.77 - 188,873.05 ≈ $13,822.72
Therefore, Caroline would have approximately $13,822.72 more in her account than Qasim after 10 years.