Question 1179708
.
<pre>

For the continuously compounded account, the annual growth factor is

    {{{e^0.07}}} = {{{2.71828^0.07}}} = 1.072508  (approximately).



For the annually compounded account, the annual growth factor is

    1 + 0.07 = 1.07.



The difference between amounts the problem asks for, is

    {{{500*1.072508^10}}} - {{{500*1.07^10}}} = 23.30 dollars.    <U>ANSWER</U>
</pre>

Solved.


-----------


I could solve this problem in one line, using the standard formulas.


But I decided to present it in more detailed form to make it more educational for you.



/////////////



For discetely and continuously compounded account, &nbsp;look into these two lessons

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/percentage/lessons/Compound-interest-percentage-problem.lesson>Compounded interest percentage problems</A> 

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/logarithm/Problems-on-discretely-compound-accounts.lesson>Problems on discretely compound accounts</A> 

in this site, and learn the subject from there.



After reading these lessons, you will tackle such problems on your own without asking for help from outside.


Also, &nbsp;you have this free of charge online textbook in ALGEBRA-I in this site

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson>ALGEBRA-I - YOUR ONLINE TEXTBOOK</A>.


The referred lessons are the part of this online textbook under the topic "<U>Logarithms</U>".



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.



Happy learning (!)