SOLUTION: Aaron invested $7,000 in an account paying an interest rate of 3 5/8 compounded continuously. Mia invested $7,000 in an account paying an interest rate of 3 3/4% compounded monthly

Algebra.Com
Question 1159176: Aaron invested $7,000 in an account paying an interest rate of 3 5/8 compounded continuously. Mia invested $7,000 in an account paying an interest rate of 3 3/4% compounded monthly. After 17 years , how much more money would Mia have in her account than aaron, to the nearest dollar?
Answer by ikleyn(52799)   (Show Source): You can put this solution on YOUR website!

3% = 0.03625.

Aaron's account after 17 years  A =  =  = 12963.79 dollars.



3% = 0.0375.

Mia's account after 17 years M =  = 13229.06 dollars.



Mia - Aaron (the difference) is  13229.06 - 12963.79 = 265.27, or, rounded to the nearest dollar, 265 dollars.    ANSWER

Solved.

-----------------

On discretely compounded and continuously compounded accounts see the lessons
    - Problems on discretely compound accounts
    - Problems on continuously compound accounts
in this site.

Also,  you have this free of charge online textbook in ALGEBRA-I in this site
    - ALGEBRA-I - YOUR ONLINE TEXTBOOK.

The referred lessons are the part of this online textbook under the topic "Logarithms".


Save the link to this online textbook together with its description

Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson

to your archive and use it when it is needed.


RELATED QUESTIONS

Hunter invested $750 in an account paying an interest rate of 6 5/8% compounded... (answered by Boreal)
A teenager has $10,000 invested in a checking account paying 2.5% per year and a savings (answered by math_helper)
John received an inheritance of $12,000$12,000 that he divided into three parts and... (answered by Boreal)
Hailey invested $460 in an account paying an interest rate of 4.5% compounded... (answered by stanbon)
A principal of $12,000 is invested in an account paying an annual interest rate of 6%.... (answered by rfer)
2000 dollars is invested in a bank account at an interest rate of 7 percent per year,... (answered by stanbon)
a. For their newborn child, parents deposit $10,000 in a college account that pays 8%... (answered by Boreal)
7000 dollars is invested in a bank account at an interest rate of 6 percent per year,... (answered by greenestamps)
A principal of $6500 is invested in an account paying an annual rate of 7%. Find the... (answered by Boreal)