Answer:
19
Explanation:
Rate 1: 3
4
1
%=3+1/4=
\,\,3.25\%\rightarrow 0.0325
3.25%→0.0325
\text{Rate 2: }3\tfrac{1}{8}\%=3+1/8=
Rate 2: 3
8
1
%=3+1/8=
\,\,3.125\%\rightarrow 0.03125
3.125%→0.03125
\text{Calculate Final Amount for Nevaeh}
Calculate Final Amount for Nevaeh
\overline{\phantom{\text{Calculate Final Amount for Nevaeh}}}
Calculate Final Amount for Nevaeh
\text{Compounded Continuously:}
Compounded Continuously:
A=Pe^{rt}
A=Pe
rt
P=660\hspace{35px}r=0.0325\hspace{35px}t=14
P=660r=0.0325t=14
Given values
A=660e^{0.0325(14)}
A=660e
0.0325(14)
Plug in
A=660e^{0.455}
A=660e
0.455
Multiply
A=1040.2744
A=1040.2744
Use calculator (with e button)
\text{Calculate Final Amount for Jonathan}
Calculate Final Amount for Jonathan
\overline{\phantom{\text{Calculate Final Amount for Jonathan}}}
Calculate Final Amount for Jonathan
\text{Compounded Monthly:}
Compounded Monthly:
A=P\left(1+\frac{r}{n}\right)^{nt}
A=P(1+
n
r
)
nt
Compound interest formula
P=660\hspace{35px}r=0.03125\hspace{35px}t=14\hspace{35px}n=12
P=660r=0.03125t=14n=12
Given values
A=660\left(1+\frac{0.03125}{12}\right)^{12(14)}
A=660(1+
12
0.03125
)
12(14)
Plug in values
A=660(1.0026042)^{168}
A=660(1.0026042)
168
Simplify
A=1021.6468
A=1021.6468
Use calculator
\text{How much more money Nevaeh has:}
How much more money Nevaeh has:
1040.2744-1021.6468
1040.2744−1021.6468
18.6276
18.6276
\$ 19
$19