Answer:
$265.27
Explanation:
Aaron invested $7,000 in an account paying an interest rate of 3 5/8 compounded continuously. Mia invested $7,000 in an account paying an interest rate of 3 3/4% compounded monthly. After 17 years , how much more money would Mia have in her account than aaron, to the nearest dollar?
Aaron:
A = Pe^rt
r = 3 5/8%
r = 3.625/100
r = 0.03625 rate per year
A = Pe^rt
A = 7,000(2.71828)^(0.03625)(17)
= 7,000(2.71828)^0.61625
= 7,000(1.8519693482716)
A = $12,963.79
Mia:
A = P(1 + r/n)^nt
r = 3 3/4%
r = 3.75/100
r = 0.0375 rate per year
A = P(1 + r/n)^nt
A = 7,000(1 + 0.0375/12)^(12)(17)
A = 7,000(1 + 0.003125)^(204)
A = 7,000(1.003125)^204
A = 7,000(1.8898660935607)
A = $13,229.06
Difference between Mia and Aaron account
Mia - Aaron = $13,229.06 - $12,963.79
= $265.27