Question

Lydia invested $5900 in an account paying an interest rate of 2 5/8% compounded monthly. Jace invested $5900 in an account paying an interest rate of 2 1/8% compounded continuously. After 19 years how much more money would lydia have in her account than jace to the nearest dollar.

Answer 1

Answer: $875

Step-by-step explanation: $875.18

Answer 2

$875.18

Explanation:

Given data

Lydia

P=$5900

Interest rate=2 5/8% >>21/8= 2.625%

compounded monthly.

First, convert R percent to r a decimal

r = R/100

r = 2.625%/100

r = 0.02625 per year,

Then, solve our equation for A

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

A = 5,900.00(1 + 0.0021875/12)^(12)(19)

A = $ 9,710.01

Jace

P=$5900

Interest rate= 2 1/8% >>> 17/8>> 2.125%

Time= 19 years

First, convert R percent to r a decimal

r = R/100

r = 2.125%/100

r = 0.02125 per year,

Then, solve our equation for A

A = Pert

A = 5,900.00(2.71828)^(0.02125)(19)

A = $ 8,834.83

Hence the difference in their account balance is

= 9,710.01- 8,834.83

=$875.18

Therefore Lydia has $875.18 more money than Jace