Question

Gabriel invested $77,000 in an account paying an interest rate of 3%

Answer 1

Answer:

Isabella earn $5604.54$ more money than  Gabriel

Step-by-step explanation:

As we know

Compound interest (CI) $= P (1 + \frac{r}{n})^{nt}$

P is the principal amount

t is the time period

n is the number of time periods

r is the rate of interest

a)  CI for  Gabriel

$= 77000 (1 + \frac{3}{100*12})^{12*6}$ $= 92165.03$ dollars

b) CI for Isabella

$= 77000 (1 + \frac{4}{100*4})^{4*6}$ $= 97769.57$ dollars

Isabella earn $5604.54$ more money than  Gabriel