Answer:account b will have the greater balance after 10 years.
Explanation:
a) $2000 is deposited in an account. This means that the principal,
P = 2000
It was compounded monthly. This means that it was compounded 12 times in a year. So
n = 12
The rate at which the principal was compounded is 6.5%. So
r = 6.5/100 = 0.065
It was compounded for just 10 years. So
t = 10
The formula for compound interest is
A = P(1+r/n)^nt
A = total amount in the account at the end of t years. Therefore
A = 2000 (1+0.065/12)^12×10
A = $3824
b) The formula for continuously compounded interest is A = P x e (r x t)
Where
e = 2.7183
A = 2000 × 2.7183^(0.0625 × 10)
A = $3736.5