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Adrian invested $380 in an account paying an interest rate of 4 3/4% compounded daily. Jason invested 380$ in an account paying an interest rate of 4 1/2% compounded continuously. To the nearest dollar, how much money would Adrian have in his account when Jason's money has doubled in value

User Jcady
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1 Answer

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Input Data

Adrian

Investment

P = $380

Interes rate

r = 4.75 %

Compound daily

Jason

Investment

P = $380

Interest rate

r = 4.5%

Compound continuously

How much money Adrian when Jason double in value

Procedure

Jason

First, convert R percent to r a decimal

r = R/100

r = 4.5%/100

r = 0.045 per year,

Then, solve our equation for t

t = ln(A/P) / r

t = ln(760.00/380.00) / 0.045

t = 15.403 years

Summary:

The time required to get

a total amount of $ 760.00

from compound interest on a principal of $ 380.00

at an interest rate of 4.5% per year

and compounded continuously

is 15.403 years. (about 15 years 5 months)

Adrian

First, convert R percent to r a decimal

r = R/100

r = 4.75%/100

r = 0.0475 per year,

Then, solve our equation for A

A = P(1 + r/n)^(nt)

A = 380.00(1 + 0.000130137/365)(365)(15.403)

A = $ 789.79

Summary:

The total amount accrued, principal plus interest,

from compound interest on an original principal of

$ 380.00 at a rate of 4.75% per year

compounded 365 times per year

over 15.403 years is Summary:

The total amount accrued, principal plus interest,

from compound interest on an original principal of

$ 380.00 at a rate of 4.75% per year

compounded 365 times per year

over 15.403 years is $ 789.79.

The answer would be $790

User Aravind Yarram
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