Question

James invests $10,000 in an account earning 6% interest, compounded annually. Curtis invests $10,000 in an account earning 5% interest, compounded annually. Given that no additional deposits are made, compare the balances of the two accounts after 10 years. (round to the nearest dollar)

Answer 1

Solution:

we are given that

James invests $10,000 in an account earning 6% interest, compounded annually.

Curtis invests $10,000 in an account earning 5% interest, compounded annually.

Given that no additional deposits are made, compare the balances of the two accounts after 10 years.

So here t=10 years.

As we know that

$A=P(1+ \frac{r}{100} )^n$

So In James account after 10 years we have

$A=10000(1+ \frac{6}{100} )^{10}$

$A=10000(1+0.06 )^{10}$

$A=10000(1.06 )^{10}=17908.5 \approx 17909$ $

So In Curtis  account after 10 years we have

$A=10000(1+ \frac{5}{100} )^{10}$

$A=10000(1+0.05 )^{10}$

$A=10000(1.05 )^{10}=16288.9 \approx 16289$ $

Hence james will have 17909-16289=1620$ more in his account after 10 years.

Answer 2

B is your answer it took me some time to find it also