Answer:
$15.30
Step-by-step explanation:
The formula for the account balance with continuous compounding is ...
A = Pe^(rt)
For the given values, this is ...
A = $3000·e^(0.05·10)
A ≈ $4946.16 . . . . balance with continuous compounding
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The amount with quarterly compounding is ...
A = P(1 +r/n)^(nt)
A = $3000(1 +.05/4)^(4·10)
A ≈ $4930.86 . . . . balance with quarterly compounding
__
The difference is ...
$4946.16 -4930.86 = $15.30
The continuously compounded account would earn $15.30 more in 10 years.
