SOLUTION: Elle's parents invested $5,000 in two different accounts for her college fund. The first account had an interest rate of 5.5% and was compounded monthly. The second account had t

Question 1042519: Elle's parents invested $5,000 in two different accounts for her college fund. The first account had an interest rate of 5.5% and was compounded monthly. The second account had the same rate but was compounded continuously. After 18 years, what was the value of each account?
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
In order to help you with your problem I need to know:
"Elle's parents invested $5,000 in two different accounts"
Did they invest 5K in each account or a total of 5K in the 2 accounts?
----------------------------
For now I'll assume that it's 5K in each account
:
Monthly:
5,000(1+0.055/12)^(12*18) = 13,425.77
:
Continuous:
5,000*e^(0.055*18) = 13,456.17
Note: If your calculator doesn't have e, use 2.71828 for e.
:
John
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