Question

William invested $2,300 in an account paying an interest rate of 2 1/8% compounded quarterly. Nolan invested $2,300 in an account paying an interest rate of 2 3/4% compounded monthly. After 20 years, how much more money would Nolan have in his account than William, to the nearest dollar?

Answer 1

Answer:

470

Step-by-step explanation:

I got it wrong from the dummy above me

Answer 2

Answer:

$478

Step-by-step explanation:

After 20 years, William will have a total of $3,513.94

After 20 years, Nolan will have a total of $3,991.93

Difference = $478

William:

2300[1 + (.02125 ÷ 4)]^4 · 20

2300 · (1 + .0053125)^80

2300(1.5278)

$3,513.94

Nolan:

2300[1 + (.0275 ÷ 12)]^12 · 20

2300 · (1 + .0023)^240

2300(1.7356)

$3,991.93