Question

Jose invested $8,000 in an account paying an interest rate of 7 3 8 7 8 3 ​ % compounded daily. Adam invested $8,000 in an account paying an interest rate of 7 7 8 7 8 7 ​ % compounded annually. To the nearest dollar, how much money would Jose have in his account when Adam's money has tripled in value?

Answer 1

$23294

Explanation:

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Answer 2

Jose would have accumulated $23,325.21

Explanation:

Giving the following information:

The interest rates are not clear. If they are not correct, replace them in the formulas.

Jose:

Initial investment= $8,000

Interest rate= 7.38 compounded daily.

Adam:

Initial investment= $8,000

Interest rate= 7.78% compounded annually.

Future value= 8,000*3= 24,000

First, we need to calculate the time required for Adam to triple its investment.

n= ln(FV/PV) / ln(1+i)

n= ln(24,000/8,000) / ln(1.0778)

n= 14.66 years

It will take Adam 14.66 years to triple the investment.

Now, the future value for Jose:

FV= PV*(1+i)^n

PV= 8,000

i= 0.0738/365= 0.0002

n= 14.66*365= 5,351 days

FV= 8,000*(1.0002^5,351)

FV= $23,325.21

Jose would have accumulated $23,325.21