IDNLearn.com makes it easy to find the right answers to your questions. Get timely and accurate answers to your questions from our dedicated community of experts who are here to help you.

Melanie invested $9,800 in an account paying an interest rate of 4.5 compounded quarterly. Amelia invested $9,800 in an account paying an interest rate of 4.75 compounded continuously. After 20 years, how much more money would Amelia have in her account than Melanie, to the nearest dollar?

Sagot :

Answer:

$13,082.60 more

Step-by-step explanation:

Melanie:

[tex]A=P(1+\frac{r}{n})^(20)\\ A=9800(1+\frac{.045}{4})^(20)\\A=$12,257.36[/tex]

Amelia:

[tex]A=Pe^(rt)\\A=9800e^(.0475*20)\\A=$25,339.95[/tex]

Amelia-Melanie= $13,082.60