Question

Natalie invested $40,000 in an account paying an interest rate of 8 % compounded

continuously. Mackenzie invested $40,000 in an account paying an interest rate of
9 % compounded daily. After 20 years, how much more money would Mackenzie
have in her account than Natalie, to the nearest dollar?
%

Answer 1

8000

Step-by-step explanation:

Natalie

Divide 40k by 2 to get 20k and divide 20k by 5 to get 4k we are at 10%

4k / 5 = 800 that means that every 2% is 800 now we multiply by 4x

To get 8% and we get 3200 and multiply by 20 representing the yrs

3200 x 20 = 64k + 40+ = 104k

Mackenzie

40k divide by 2 to get 50% 40k / 2 = 20k and now we divide by 5 to get 10% 20k / 5 = 4k now we divide by 10 to get the amount of each percents worth 4k / 10 = 400 we multiply by 9 to get the compounded interest

400 x 9 = 3600 multiply by 20 to get the compounded daily investment after 20yrs 3600 x 20 = 72k + 40k = 112k

112k - 104k = 8k