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ZanzabumX [31]
2 years ago
10

Brian invests $10,000 in an account earning 4% interest, compounded annually for 10 years. Five years after Brian's initial inve

stment, Chris invests $10,000 in an account earning 7% interest, compounded annually for 5 years. Given that no additional deposits are made, compare the balances of the two accounts after the interest period ends for each account. (round to the nearest dollar) A) Chris has $766 more in his account than Brian. B) Brian has $766 more in his account than Chris. C) Chris has $1,593 more in his account than Brian. D) Brian has $1,593 more in his account than Chris.
Mathematics
1 answer:
pentagon [3]2 years ago
6 0

Answer:

Brian has $776 more account in his account than Chris.

Step-by-step explanation:

Compound interest Formula:

A=P(1+r)^t

I= A-P

A= Amount after t years

P= Initial amount

r= Rate of interest

t= Time in year

Given that,

Brian invests $10,000 in an account earning 4% interest, compounded annually for 10 years.

Here P = $10,000 , r= 4%=0.04, t=10 years

The amount in his account after 10 years is

A=10000(1+0.04)^{10}

   =$14802.44

  ≈$14802

Five years after Brian's investment,Chris invests $10,000 in an account earning 7% interest, compounded annually for 5 years.

Here P = $10,000 , r= 7%=0.07, t=5 years

The amount in his account after 5 years is

A=10000(1+0.07)^{5}

   =$14025.51

  ≈$14026

From the it is cleared that Brian has $(14802-14026)=$776 more account in his account than Chris.

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