Question

Aubree invested $27,000 in an account paying an interest rate of 0.0825% compounded monthly. Addison invested $27,000 in an account paying an interest rate of 0.08625 % compounded continuously. After 20 years, how much more money would Addison have in her account than Aubree, to the nearest dollar?

Answer 1

Answer:

A = $27,445.50

Step-by-step explanation:

Equation:

A = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 0.0825%/100 = 0.000825 per year.

Solving our equation:

A = 27000(1 + (0.000825 × 20)) = 27445.5

A = $27,445.50

The total amount accrued, principal plus interest, from simple interest on a principal of $27,000.00 at a rate of 0.0825% per year for 20 years is $27,445.50.