Answer: Nora have $22 in her account than Cooper
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
Considering the Cooper's account
P = 510
r = 3 3/8% = 3.375% = 3.375/100 = 0.0375
n = 365 because it was compounded daily.
t = 7 years
Therefore,.
A = 510(1+0.03375/365)^365× 7
A = 510(1.0000925)^2555
A = $645.966
Considering the Nora's account
P = 510
r = 3 7/8% = 3.875% = 3.875/100 = 0.03875
n = 12 because it was compounded monthly.
t = 7 years
Therefore,.
A = 510(1+0.03875/12)^12× 7
A = 510(1.003229^84
A = $668.1
The difference in both accounts is
668.1 - 645.966 = $22
