Question

Gabriel invested $77,000 in an account paying an interest rate of 3 1/2% compounded monthly. Isabella invested $77,000 in an account paying an interest rate of 4 1/8% compounded quarterly. After 6 years, how much more money would Isabella have in her account than Gabriel, to the nearest dollar?

Answer 1

Answer: 3534

3534 in delta math

Explanation:

Answer 2

WE know, compound interest is given by :

`A = P(1 + (r)/(n))^(nt)`

Here, P is principle amount.

r is annual interest rate.

n, number of times that interest is compounded per unit t .

t, time the money is invested or borrowed for.

To Find :

How much more money would Isabella have in her account than Gabriel, to the nearest dollar.

Solution :

`D = P(1 + (r_1)/(n))^(nt)- P(1 + (r_2)/(n))^(nt)\\\\D = 77000* ( 1 + (33)/(8* 12))^(12* 6)-77000* ( 1 + (7)/(2* 12))^(12* 6)\\\\D = \$(1.257* 10^(14))`

Hence, this is the required solution.