Answer:
Rate 1: 8
4
1
%=8+1/4=
8.25
%
→
0.0825
8.25%→0.0825
Rate 2:
8
1
2
%
=
8
+
1
/
2
=
Rate 2: 8
2
1
%=8+1/2=
8.5
%
→
0.085
8.5%→0.085
Calculate Final Amount for Ellie
Calculate Final Amount for Ellie
‾
Calculate Final Amount for Ellie
Compounded Continuously:
Compounded Continuously:
A
=
P
e
r
t
A=Pe
rt
P
=
13000
r
=
0.0825
t
=
18
P=13000r=0.0825t=18
Given values
A
=
13000
e
0.0825
(
18
)
A=13000e
0.0825(18)
Plug in
A
=
13000
e
1.485
A=13000e
1.485
Multiply
A
=
57394.5504
A=57394.5504
Use calculator (with e button)
Calculate Final Amount for Daniel
Calculate Final Amount for Daniel
‾
Calculate Final Amount for Daniel
Compounded Daily:
Compounded Daily:
A
=
P
(
1
+
r
n
)
n
t
A=P(1+
n
r
)
nt
Compound interest formula
P
=
13000
r
=
0.085
t
=
18
n
=
365
P=13000r=0.085t=18n=365
Given values
A
=
13000
(
1
+
0.085
365
)
365
(
18
)
A=13000(1+
365
0.085
)
365(18)
Plug in values
A
=
13000
(
1.0002329
)
6570
A=13000(1.0002329)
6570
Simplify
A
=
60025.6058
A=60025.6058
Use calculator
How much more money Daniel has:
How much more money Daniel has:
60025.6058
Rate 1: 8
4
1
%=8+1/4=
8.25
%
→
0.0825
8.25%→0.0825
Rate 2:
8
1
2
%
=
8
+
1
/
2
=
Rate 2: 8
2
1
%=8+1/2=
8.5
%
→
0.085
8.5%→0.085
Calculate Final Amount for Ellie
Calculate Final Amount for Ellie
‾
Calculate Final Amount for Ellie
Compounded Continuously:
Compounded Continuously:
A
=
P
e
r
t
A=Pe
rt
P
=
13000
r
=
0.0825
t
=
18
P=13000r=0.0825t=18
Given values
A
=
13000
e
0.0825
(
18
)
A=13000e
0.0825(18)
Plug in
A
=
13000
e
1.485
A=13000e
1.485
Multiply
A
=
57394.5504
A=57394.5504
Use calculator (with e button)
Calculate Final Amount for Daniel
Calculate Final Amount for Daniel
‾
Calculate Final Amount for Daniel
Compounded Daily:
Compounded Daily:
A
=
P
(
1
+
r
n
)
n
t
A=P(1+
n
r
)
nt
Compound interest formula
P
=
13000
r
=
0.085
t
=
18
n
=
365
P=13000r=0.085t=18n=365
Given values
A
=
13000
(
1
+
0.085
365
)
365
(
18
)
A=13000(1+
365
0.085
)
365(18)
Plug in values
A
=
13000
(
1.0002329
)
6570
A=13000(1.0002329)
6570
Simplify
A
=
60025.6058
A=60025.6058
Use calculator
How much more money Daniel has:
How much more money Daniel has:
60025.6058
−
57394.5504
60025.6058−57394.5504
2631.0554
2631.0554
$
2631
$2631
Round to the nearest dollar−
57394.5504
60025.6058−57394.5504
2631.0554
2631.0554
$
2631
$2631
Round to the nearest dollar
Step-by-step explanation:
