Final answer:
After 1 year, Charles has $405.00 more than Mark.
Step-by-step explanation:
To calculate the difference in the amount of money that Charles has compared to Mark after 1 year, we can use the formula for compound interest. The formula for compound interest is:
A = P(1 + r/n)^(nt)
Where A is the final amount, P is the principal amount (the initial investment), r is the annual interest rate, n is the number of times that interest is compounded per year, and t is the number of years.
In this case, Mark's principal amount is $33,000, the interest rate is 2.7% (or 0.027 as a decimal), and the number of times interest is compounded per year is 1. Charles's principal amount is also $33,000, but the interest rate is 5.2% (or 0.052 as a decimal).
Plugging these values into the formula, we get:
Mark: A = 33000(1 + 0.027/1)^(1*1) = $33,891.00
Charles: A = 33000(1 + 0.052/1)^(1*1) = $34,296.00
The difference in the amount of money that Charles has compared to Mark after 1 year is $34,296.00 - $33,891.00 = $405.00.